NKOSI $($PTY$)$ LIMITED

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED $28$ FEBRUARY $2012$

Note

$2012$

$2011$

R

R

Revenue$/$Sales

$2356420$

$2067035$

Cost of Sales

$2090195$

$1870665$

Opening inventory

$133620$

$124105$

Purchases

$2130755$

$1880180$

Closing inventory

$(174180)$

$(133620)$

Gross profit

$266225$

$196370$

Operating expenses

$(154295)$

$(89145)$

Depreciation

$(22000)$

$(20000)$

Administrative and selling expenses

$(132295)$

$(69145)$

Profit before interest and tax $($PBIT$)$

$111930$

$107225$

Interest cost

$(32500)$

$(37125)$

Profit before tax $($PBT$)$

$79430$

$70100$

Income tax

$(23035)$

$(20330)$

Net profit after tax $($NPAT$)$

$56395$

$49770$

identify if inventory increased or decreased between $2011$ and $2012$ and give a reason for your answer: