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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
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)
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