Study the income statement below of a hypothetical company and answer the questions

Questions:

1. What do you understand by an income statement as in financial accounting?
2. Determine the corporate tax rate
3. What do you understand by Gross Profit?
4. In the accounting period 3; net profit was 2 704 427. How is this amount presented in the other financial statement?
5. In the accounting period 4; net profit/loss was minus (1 248 461). How does this amount impact the other financial statement?

Description Accounting Year Accounting Year 3 4 Income from and Expenses of Regular Types of Activities Proceeds (net) from sales of goods, products, operations, services (less value added tax, excise tax and similar statutory charges) 61 393 312 46 831 335 electric power export 29 016 605 22 255 710 electric power (facilities) sold in the domestic market 30 765 097 23 502 049 electric power sold without importing to the RF customs territory 505 864 other 1 611 610 567 712 Cost price of sold goods, products, operations, services (49 592 567) (39 103 164) electric power (facilities) purchased in the domestic market (34 622 258) (25 396 168) electric power (facilities) production (11 789 018) (10 740 378) electric power imported (1 976 670) (1 944 249) electric power sold without importing to the RF customs territory (319 822) other (1 204 621) (702 547) Gross Profit 11 800 745 7728 171 Trade expenses (5 139 517) (3 634 203) Management expenses (3 513 825) (1 948 877) Sales Profit (loss) 3 147 403 2 145 091 Other Income and Expenses Interest receivable 1716 199 1 304 579 Interest payable (2 464 042) (2 486 214) Income from interest in other organizations 904 432 172 255 Other operating income 60 097 025 68 499 482 Other operating expenses (60 082 250) (70 738 142) Profit (loss) before taxation 3318 767 (1 102 949) Deferred tax assets 335 801 50 031 Deferred tax liabilities (174 835) (79 449) Current profit tax (696 880) (53 175) Other similar charges (78 426) (62 919) Net profit (loss) in the accounting period 2 704 427 (1 248 461)