help
Alalase Sheet as at 34 June Queasion f cuntinuts oni ine nect pgat in 2sinote Pages 2 of 1 (a) Review the balance thoet and dietute yeur key inkighth. Am io analyne and syrehesise your findings lo uncover the siofy behind these two balance sheets. Comment on the key bends for the latest year and what has changed in comparison to the year belore Nole. For this baiarce sheet revew, there is no shict sequirement io compute any fornal resos, bet you might find a heteld te compute a couple at ielevard balevie sheet rates for your avalysis. (12 marks) (b) Review the income statement and sompule Puple 's profit margins (gross. operating and reft for beth years. What inenss do you okiverve in relation io Puple is top line and bottom ine? Using the maggins, explain how cost of saies, opbrating and non-operating cosis have been manaped asross the tuo perisde Commett on the above. Explain why there is a need to produce an Income Statement and Statement of Cash flows, given that profit and cash movements can be understood by viewing two consecutive Statements of Financial Position. Where possible, illustrate your arguments with examples. (12 marks) Question 3 For each of the following 3 transactions, state the immediate effect (increase, decrease, no effect) on both profit and cash of: 1. Depreciating a non-current asset 2. Purchasing inventory on credit from a supplier 3. Disposing of a non-current asset (e.g. equipment) through selling it, where the selling price is lower than the book value of the asset on the date of the sale Provide a brief explanation for each of your answers above. Alalase Sheet as at 34 June Queasion f cuntinuts oni ine nect pgat in 2sinote Pages 2 of 1 (a) Review the balance thoet and dietute yeur key inkighth. Am io analyne and syrehesise your findings lo uncover the siofy behind these two balance sheets. Comment on the key bends for the latest year and what has changed in comparison to the year belore Nole. For this baiarce sheet revew, there is no shict sequirement io compute any fornal resos, bet you might find a heteld te compute a couple at ielevard balevie sheet rates for your avalysis. (12 marks) (b) Review the income statement and sompule Puple 's profit margins (gross. operating and reft for beth years. What inenss do you okiverve in relation io Puple is top line and bottom ine? Using the maggins, explain how cost of saies, opbrating and non-operating cosis have been manaped asross the tuo perisde Commett on the above. Explain why there is a need to produce an Income Statement and Statement of Cash flows, given that profit and cash movements can be understood by viewing two consecutive Statements of Financial Position. Where possible, illustrate your arguments with examples. (12 marks) Question 3 For each of the following 3 transactions, state the immediate effect (increase, decrease, no effect) on both profit and cash of: 1. Depreciating a non-current asset 2. Purchasing inventory on credit from a supplier 3. Disposing of a non-current asset (e.g. equipment) through selling it, where the selling price is lower than the book value of the asset on the date of the sale Provide a brief explanation for each of your answers above
