QUESTION 5 Carolyn has been thinking for a while about investing some surplus cash in a friend's company, Buzz Ltd. The company is looking for additional investors in order to fund a planned expansion of the business. Carolyn has received financial statements for the business for 2018 and 2019 which are shown below: Buzz Ltd Income Statement year ended 31 December 2018 2019 RM RM Sales 46,893 (19,680) Cost of Sales GROSS PROFIT Administrative Expenses 27,213 (12,102) Distribution Costs (4,149) OPERATING PROFIT 10,962 Interest payable (702) PROFIT BEFORE TAXATION 10,260 Taxation (2,052) PROFIT AFTER TAXATION 8,208 Dividends (1,170) RETAINED PROFIT FOR THE YEAR 7,038 Retained profit b/f 5,694 RETAINED PROFIT c/f 12,732 39,447 (17,589) 21,858 (10,824) (3,162) 7,872 (903) 6,969 (1,395) 5,574 (1,170) 4,404 1,290 5,694 QUESTION 5 Carolyn has been thinking for a while about investing some surplus cash in a friend's company, Buzz Ltd. The company is looking for additional investors in order to fund a planned expansion of the business. Carolyn has received financial statements for the business for 2018 and 2019 which are shown below: Buzz Ltd Income Statement year ended 31 December 2018 2019 RM RM Sales 46,893 (19,680) Cost of Sales GROSS PROFIT Administrative Expenses 27,213 (12,102) Distribution Costs (4,149) OPERATING PROFIT 10,962 Interest payable (702) PROFIT BEFORE TAXATION 10,260 Taxation (2,052) PROFIT AFTER TAXATION 8,208 Dividends (1,170) RETAINED PROFIT FOR THE YEAR 7,038 Retained profit b/f 5,694 RETAINED PROFIT c/f 12,732 39,447 (17,589) 21,858 (10,824) (3,162) 7,872 (903) 6,969 (1,395) 5,574 (1,170) 4,404 1,290 5,694