Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with Accounting and financial management QUESTION 2 The Statement of Comprehensive Income provided below was obtained from the accounting records of Dreamonline Limited:

please help with Accounting and financial management
image text in transcribed
QUESTION 2 The Statement of Comprehensive Income provided below was obtained from the accounting records of Dreamonline Limited: Statement of Comprehensive Income for the year ended 31 August 2018 (Extract) R Sales 5 000 000 Cost of sales (1 900 000) 3 100 000 Gross profit Operating expenses (700 000) Operating profit 2 400 000 Interest income 50 000 Interest expense 200 000 Profit before tax (630 000 Income tax Net profit 1570 000 Required: 2.1 Explain SIX (6) reasons why shareholders and financial managers would be interested in the Statement of Comprehensive Income (6) (3) 2.2 Calculate the interest expense for the year ended 31 August 2018. (3) 2.3 Explain the accounting treatment of sales returns and allowances. Interest has been calculated at 8 % per year on the amount invested. Assume that there was no investments during the year, determine the value of the investment. change in (2) 2.4 2.5 Which method of depreciation will result in lower net profit in the early years of the life of the asset? Explain why. (3) (3) Of what significance is the operating profit to investors? 2.6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

SAP Certified Application Associate Financial Accounting With SAP ERP 6 0

Authors: Kiran K ,Augustine D

1st Edition

1544118724, 978-1544118727

More Books

Students also viewed these Accounting questions