Given below are the statements of profit or loss of Alice and Jambu for the year ended 31 December x7. Alice Jambu $'000 $'000 Sales 4.000 3.000 Cost of sales (1,500) (1,000) Administrative expenses (300) (500) Selling expenses (200) (500) Operating profit 2,000 1,000 taxation (600) (300) 1.400 700 Retained profit b/f 700 400 Dividends - proposed ordinary on 15 December x7 100 100