The following information has been extracted from the financial statements of Sowoni Limited:

Sales 4 500 000

Cost of sales 2 050 000

Gross profit 2 450 000

Operating expenses 780 000

Profit from operations 1 670 000

interest income 55 000

interest expense ?

Profit before tax 1 605 000

Income tax 481 500

Net profit 1 123 500

2.1Analyse two possible reasons why the shareholders would be interested in the statement of comprehensive income.

2.2 Calculate the interest expense for the year ended June 30

2.3 Discuss the accounting treatment of sales returns and allowances

2.4 Interest has been calculated at 8% per year on the amount invested. Assuming there was no change in investments during the year , determine the value of the investment

2.5 Describe which method of depreciation will result in lower net profit in the early years of the life of the asset.

2.6 Analyze the significance of operating profit to investors