Guidelines: All workings must be shown and students have to ensure that all answers are typed in.

QUESTION TWO 2.1 REQUIRED Calculate the value of closing inventory as at 31 December 2019 and gross profit for the year ended 31 December 2019 using the weighted average cost method. Use the format of the Statement of Comprehensive Income to present your answer. INFORMATION: Hemosol Limited, a supplier of medical supplies, inventory records are presented in the table below: Closing inventory of 80 units at R140 each on 31 December 2018 80 units at R160 were purchased on 30 April 2019 60 units at R180 were purchased on 30 June 2019 100 units at R200 were purchased on 30 August 2019 During the year (Jan-Dec 2019) 280 units were sold at R320 each 2.2 REQUIRED Use the percentage-of-sales method to determine the change in the working capital requirements for 2020 INFORMATION: The following information was extracted from the financial statements for 2019: R 2 200 000 Sales Inventory Debtors Cash and cash equivalents 308 000 264 000 132 000 Current liabilities Creditors Accruals (264 000) 220 000 44 000 Additional information: Sales for 2020 are expected to be R2 640 000