Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 The information provided below relates to the extract of the Statement of Comprehensive Income of Remicah Limited: 1. The gross margin of Remicah

image text in transcribed

image text in transcribed

Question 5 The information provided below relates to the extract of the Statement of Comprehensive Income of Remicah Limited: 1. The gross margin of Remicah Limited for the year ended 31 December 2021 is 55%. 2. The profit margin of Remicah Limited for the year ended 31 December 2021 is 10%. REMICAH LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020 R Sales ? Cost of sales ? Gross profit ? Operating expenses ? Operating profit ? Interest expense (50 000) Profit before tax ? Income tax (30%) ? Profit after tax 320 000 5.1 Using the information provided above, complete the extract of the Statement of Comprehensive Income of Remicah Limited (round off all values to the nearest Rand). (10 marks) 5.2 Interest on the company's long-term borrowings was 8% per annum for the year ended 31 December 2020 and the total owners' equity was R1 500 000 on 31 December 2020. Calculate the following for Remicah Limited: The carrying amount of long-term borrowings in the Statement of Financial Position of Remicah Limited as at 31 December 2020. 5.2.1 (2 marks) 5.2.2 The enterprise profitability for the year ended 31 December 2020 (round off answer to two decimal places). (4 marks) 5.2.3 The profitability of own capital for the year ended 31 December 2020 (round off answer to two decimal places). (4 marks)

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

Step: 3

blur-text-image

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

Auditing A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions

Question

What are the application procedures?

Answered: 1 week ago

Question

Whether the board has jurisdiction to conduct an election.

Answered: 1 week ago