Question
QUESTION 1 (20 MARKS) REQUIRED Answer the following questions based on the information provided below: 1.1 Calculate the distribution expenses for the year ended 31
QUESTION 1 (20 MARKS) REQUIRED Answer the following questions based on the information provided below: 1.1 Calculate the distribution expenses for the year ended 31 December 2022. (2 marks) 1.2 What changes in financing activities and investing activities possibly took place during 2022? Explain. (4 marks) 1.3 Why are dividends to shareholders not disclosed in the Statement of Comprehensive Income? (2 marks) 1.4 Calculate the retained earnings for the year ended 31 December 2022. (2 marks) 1.5 Critically assess the performance of the company from the information provided with particular attention to sales, gross margin ratio, distribution expenses, administration expenses and profit after tax. (10 marks) INFORMATION The Statement of Comprehensive Income and extract of the Statement of Changes in Equity of Chippa Ltd are provided below: CHIPPA LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2022 (R) 2021 (R) Sales 18 800 000 16 800 000 Cost of sales (7 800 000) (6 800 000) Gross profit 11 000 000 10 000 000 Other operating income 600 000 560 000 Distribution expenses ? ? Administrative expenses (2 400 000) (2 400 000) Operating profit 2 960 000 2 660 000 Interest income 20 600 10 800 Interest expense (17 400) (35 200) Profit before tax 2 963 200 2 635 600 Company tax (880 000) (780 000) Profit after tax 2 083 200 1 855 600 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022 R Balance at 31 December 2021 5 884 000 Profit for the year 2 083 200 Dividends (763 200) Balance at 31 December 2022 7 204 000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started