justments to be effected on 28 February 2018

1. The following was found as per physical count.

1. 1. Trading Stock R80 300

1. 2. Packing Material R700

2. Depreciate equipment at 10% p.a. on the diminishing balance method.

3. Write of further credit losses of R2000.

4. Adjust allowance for credit losses to 5% of trade debtors.

5. Provide for the outstanding interest on loan.

6. Provide rates at 2% on value of land and buildings.

7. Final Dividends of 5 cents per share was declared on 28 February 2018

Income Tax is calculated 28% of net profit

REQUIRED:

Use the information above and draw up the following:

1. STATEMENT OF COMPREHENSIVE INCOME

2. Assume that board of directors decide to plough back 60% of the net profit,

how much would be paid out to shareholders?