QUESTION 3 (20 marks) The management of Ceramics Pro Limited are in process of restructuring their business. They consider their comparative financial statements, but they need to see a good overview of the growth and decline of items through the years. The following is an extract of the comparative statement of profit or loss and other comprehensive income of Ceramics Pro Limited for five years: 2020 2019 2018 2017 R'000 2016 R'000 R'000 R 000 R 000 Revenue 9998 7058 Rectangular Sn 15223 12225 13.558 Distribution costs (50 (778) 1999) (1979 FA Eamnings before interest and tax (EBIT) 5333 3765 4 155 2314 1415 Additional information: 1. Ceramics Pro Limited is a company that sell and distribute roof tiles to building equipment suppliers and has a few large clients. 2. Ceramics Pro Limited purchased and sold roof tiles with defects in 2016. These sales were lost because the roof tiles had been retumed to them. After that they had to convince their clients that they will do detailed inspections of the roof tiles before they deliver. 3. Tiles 40 Limited, a client of Ceramics Pro Limited, was liquidated in July 2018. This was due to poor market conditions as well as fraudulent actions by their management 6 MAC2802/02 4. Ceramics Pro Limited is currently under new management. They have been appointed in 2020. REQUIRED: a) Redraft the extract of the comparative statement of profit or loss and other comprehensive income of Ceramics Pro Limited by using the following techniques: Indexed statements Round your answer to the full percentage. g 6 / 10 QUESTION 3 (20 marks) The management of Ceramics Pro Limited are in process of restructuring their business. They consider their comparative financial statements, but they need to see a good overview of the growth and decline of items through the years. The following is an extract of the comparative statement of profit or loss and other comprehensive income of Ceramics Pro Limited for five years: 2020 2019 2018 2017 R'000 2016 R'000 R'000 R 000 R 000 Revenue 9998 7058 Rectangular Sn 15223 12225 13.558 Distribution costs (50 (778) 1999) (1979 FA Eamnings before interest and tax (EBIT) 5333 3765 4 155 2314 1415 Additional information: 1. Ceramics Pro Limited is a company that sell and distribute roof tiles to building equipment suppliers and has a few large clients. 2. Ceramics Pro Limited purchased and sold roof tiles with defects in 2016. These sales were lost because the roof tiles had been retumed to them. After that they had to convince their clients that they will do detailed inspections of the roof tiles before they deliver. 3. Tiles 40 Limited, a client of Ceramics Pro Limited, was liquidated in July 2018. This was due to poor market conditions as well as fraudulent actions by their management 6 MAC2802/02 4. Ceramics Pro Limited is currently under new management. They have been appointed in 2020. REQUIRED: a) Redraft the extract of the comparative statement of profit or loss and other comprehensive income of Ceramics Pro Limited by using the following techniques: Indexed statements Round your answer to the full percentage. g 6 / 10
