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Calculate Gross profit ratio

Calculate Gross profit ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate Gross profit ratio
PAGE 6 1 js 1 PACKAGING COMPANY LIMITED SAOG STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2020. Note 2020 2019 RO. RO. REVENUE 14 8,886,709 9,743,043 Cost of sales (8,414,758) 1,328,285 15 (7,644,631) 1,242,078 GROSS PROFIT Other operating income 16 351,700 122,808 (10,416) (36,779) (611,333) (412,357) 522,893 (141,730) 381,163 (57,399) Depreciation (15,078) 17 (15,000) Allowance for expected credit losses General and administration expenses (609,444) (425,189) 386,382 18 Selling and distribution expenses 19 PROFIT FROM OPERATING ACTIVITIES Finance costs 21 (190,028) NET PROFIT FOR THE YEAR BEFORE TAX 196,354 Income tax expense for current year 22 b) (29,625) NET PROFIT FOR THE YEAR AFTER TAX 323,764 166,729 Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: (net of tax) Loss on revaluation of freehold land (200,000) Deferred tax release on revaluation decrease 22 d) 12,637 Other comprehensive income/(loss) for the year (187,363) TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 323,764 (20,634) Basic earnings per share 23 0.108 0.056 The accompanying notes form an integral part of these financial statements. The report of the independent auditor is set forth on pages 1 to 4. For PACKAGING COMPANY LIMITED SAOG CHAIRMAN DIRECTOR
Transcribed Image Text:PAGE 6 1 js 1 PACKAGING COMPANY LIMITED SAOG STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2020. Note 2020 2019 RO. RO. REVENUE 14 8,886,709 9,743,043 Cost of sales (8,414,758) 1,328,285 15 (7,644,631) 1,242,078 GROSS PROFIT Other operating income 16 351,700 122,808 (10,416) (36,779) (611,333) (412,357) 522,893 (141,730) 381,163 (57,399) Depreciation (15,078) 17 (15,000) Allowance for expected credit losses General and administration expenses (609,444) (425,189) 386,382 18 Selling and distribution expenses 19 PROFIT FROM OPERATING ACTIVITIES Finance costs 21 (190,028) NET PROFIT FOR THE YEAR BEFORE TAX 196,354 Income tax expense for current year 22 b) (29,625) NET PROFIT FOR THE YEAR AFTER TAX 323,764 166,729 Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: (net of tax) Loss on revaluation of freehold land (200,000) Deferred tax release on revaluation decrease 22 d) 12,637 Other comprehensive income/(loss) for the year (187,363) TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 323,764 (20,634) Basic earnings per share 23 0.108 0.056 The accompanying notes form an integral part of these financial statements. The report of the independent auditor is set forth on pages 1 to 4. For PACKAGING COMPANY LIMITED SAOG CHAIRMAN DIRECTOR
PAGE 5 PACKAGING COMPANY LIMITED SAOG STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2020. Note 2020 2019 RO. RO. ASSETS NON-CURRENT ASSET Property, plant and equipment 3 4,989,072 5,434,159 CURRENT ASSETS Inventories 4. 2,064,424 2,547,002 Trade and other receivables 3,098,606 3,049,804 Other assets 6 139,190 10,823 Cash and cash equivalent 7 30,869 284,480 5,333,089 5,892,109 TOTAL ASSETS 10,322,161 11,326,268 EQUITY AND LIABILITIES MEMBERS' FUNDS Share capital 8. 3,000,000 3,000,000 90,811 Share premium Legal reserve General reserve 90,811 514.292 481,916 53,378 53,378 Revaluation reserve 649,245 649,245 Accumulated profits 365,157 73,769 Equity funds 4,672,883 4,349,119 NON-CURRENT LIABILITIES 9. Long term bank borrowing Deferred tax liability Staff end of service gratuity 92,974 22 d) 260,688 251,763 93,431 438,168 20 c) 115,065 375,753 CURRENT LIABILITIES Short term bank borrowings 10 2,682,547 4,072,072 Trade and other payables Contract liability Loan from a related party 2,354,363 14,141 11 2,291,921 12 6,288 13 100,000 93,700 Amount due to a related party 13 74,000 75,000 Current tax payable 22 b) 48,474 5,273,525 6,538,981 TOTAL EQUITY AND LIABILITIES 10,322,161 11,326,268 The accompanying notes form an integral part of these financial statements. The report of the independent auditor is set forth on pages 1 to 4. These financial statements have been approved and authorised for issue by the Board of Directors on 19th January 2021. For PACKAGING COMPANY LIMITED SAOG CHAIRMAN DIRECTOR
Transcribed Image Text:PAGE 5 PACKAGING COMPANY LIMITED SAOG STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2020. Note 2020 2019 RO. RO. ASSETS NON-CURRENT ASSET Property, plant and equipment 3 4,989,072 5,434,159 CURRENT ASSETS Inventories 4. 2,064,424 2,547,002 Trade and other receivables 3,098,606 3,049,804 Other assets 6 139,190 10,823 Cash and cash equivalent 7 30,869 284,480 5,333,089 5,892,109 TOTAL ASSETS 10,322,161 11,326,268 EQUITY AND LIABILITIES MEMBERS' FUNDS Share capital 8. 3,000,000 3,000,000 90,811 Share premium Legal reserve General reserve 90,811 514.292 481,916 53,378 53,378 Revaluation reserve 649,245 649,245 Accumulated profits 365,157 73,769 Equity funds 4,672,883 4,349,119 NON-CURRENT LIABILITIES 9. Long term bank borrowing Deferred tax liability Staff end of service gratuity 92,974 22 d) 260,688 251,763 93,431 438,168 20 c) 115,065 375,753 CURRENT LIABILITIES Short term bank borrowings 10 2,682,547 4,072,072 Trade and other payables Contract liability Loan from a related party 2,354,363 14,141 11 2,291,921 12 6,288 13 100,000 93,700 Amount due to a related party 13 74,000 75,000 Current tax payable 22 b) 48,474 5,273,525 6,538,981 TOTAL EQUITY AND LIABILITIES 10,322,161 11,326,268 The accompanying notes form an integral part of these financial statements. The report of the independent auditor is set forth on pages 1 to 4. These financial statements have been approved and authorised for issue by the Board of Directors on 19th January 2021. For PACKAGING COMPANY LIMITED SAOG CHAIRMAN DIRECTOR
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