you are the assistant accountant at golden ltd and you have prepared the following i 4382041

You are the assistant accountant at Golden Ltd, and you have prepared the following income statement for the year ended 30 June: Golden Ltd Income statement for the year ended 30 June Sales …………………………………………………….. $247 000 Cost of sales …………………………………………….. 124 000 Other income ……………………………………………. 13 000 Advertising expenses …………………………………… 16 000 Administrative expenses ………………………………… 32 000 Finance expenses ………………………………………….. 4 000 Other expenses……………………………………………… 26 000 Profit ………………………………………………………….. $58 000 Additional information: • The other income comprises $1800 of interest income. • Administrative expenses include $6700 for the depreciation of office equipment. • Finance expenses include $3700 interest expense on a bank loan. • Other expenses include the write-off of the amount owed by a major customer ($23 000) who has gone bankrupt. The accountant has requested you to produce the following financial information: (a) Gross profit (b) Profit before interest = Profit plus net interest (c) Profit before material items (d) Earnings before interest, tax and depreciation View Solution:
You are the assistant accountant at Golden Ltd and you

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