QUESTION FOUR W Vardy owns a general dealer shop for which he provides the following list of account balances for the six months ended 30 June 2020. Vardy was a little concerned about the shops trading results and requested your assistance. List of balances for six months ended 30 June 2020 R Inventory: trade goods at 2 January 2020 152 100 Consumable items 17 330 Purchases - cash 201 200 Purchases - credit 334 180 Sales - cash 711 500 Sales - credit 483 500 Goods returned by customers 74 200 Goods returned to suppliers 61 120 Railage inwards 45 500 Railage outwards 20 760 Import duty 34 Settlement discounts granted 28 600 Settlement discounts received 20 760 Additional information: 1. Physical stock-take took place on 30 June 2020 and inventories were valued at: Trade goods R145 660 Consumable items R 21 900 Required: 4.1 Prepare the "trading section" of the statement of profit or loss and other comprehensive income for Vardy's General Dealers for the six months ended 30 June 2020. Calculate the gross profit % on cost and the gross profit % on sales. 4.2 W Vardy was afraid to register as a VAT vendor as felt that registration affect the performance of the business because the VAT will consume some of his trading profit (gross profit). Advise Vardy about whether his fear is real