Answer the following questions based on the information provided below:

1.1 Calculate the distribution expenses for the year ended 31 December 2022.

1.2 What changes in financing activities and investing activities possibly took place during 2022? Explain.

1.3 Why are dividends to shareholders not disclosed in the Statement of Comprehensive Income?

1.4 Calculate the retained earnings for the year ended 31 December 2022.

1.5 Critically assess the performance of the company from the information provided with particular attention to sales, gross margin ratio, distribution expenses, administration expenses and profit after tax.

NFORMATION The Statement of Comprehensive Income and extract of the Statement of Changes in Equity of Chippa Ltd are provided below: CHIPPA LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:

2022 (R) 2021 (R)

Sales R18 800 000 R16 800 000

Cost of sales (R7 800 000) (R6 800 000)

Gross profit R11 000 000 R10 000 000

Other operating income R600 000 R560 000

Distribution expenses R? R ?

Administrative expenses (R2 400 000) (R2 400 000)

Operating profit R2 960 000 R2 660 000

Interest income R20 600 R10 800

Interest expense (R17 400) (R35 200)

Profit before tax R2 963 200 R2 635 600

Company tax (R880 000) (R780 000)

Profit after tax R2 083 200 R1 855 600

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022 R

Balance at 31 December 2021 R5 884 000

Profit for the year R2 083 200

Dividends (R763 200)

Balance at 31 December 2022 R7 204 00