Exercise 3 Sipho runs a bottle store. He prices everything so as to give him a gross profit % of 50% These figures are for his year ended 30 June 1995 All figures are in Rands For the purposes of this exercise, ignore VAT Cash received Rent paid Vehicle running expenses paid Purchases of stock for the year Wages paid Electricity paid insurance paid advertising paid nterest paid rawings 149,705 3,600 2.400 82,656 8,580 1.313 600 284 1,200 30,000
Exercise 3 Sipho runs a bottle store. He prices everything so as to give him a gross profit % of 50% These figures are for his year ended 30 June 1995 All figures are in Rands For the purposes of this exercise, ignore VAT Cash received Rent paid Vehicle running expenses paid Purchases of stock for the year Wages paid Electricity paid insurance paid advertising paid nterest paid rawings 149,705 3,600 2.400 82,656 8,580 1.313 600 284 1,200 30,000
Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
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![Exercise 3
•
Sipho runs a bottle store. He prices everything so as to give him a gross profit % of 50%
These figures are for his year ended 30 June 1995 All figures are in Rands
For the purposes of this exercise, ignore VAT
Cash received
Rent paid
Vehicle running expenses paid
Purchases of stock for the year
Wages paid
Electricity paid
Insurance paid
Advertising paid
Interest paid
Drawings
Opening stock
Closing stock
149,705
3,600
2.400
82,656
8,580
1.313
600
284
1,200
30,000
2,902
3,146
The only fixed asset is a van which Sipho bought last year for R30,000. He expects it to
last him for 5 years.
His June electricity bill of R118 was only paid in July.
Sipho very rarely sells on credit. However, a very close friend, who was waiting for some
money, was having a party during the last week of June so Sipho agreed that he could
have credit for 3 weeks. The bill came to R1,243.
•
Calculate his gross profit for the year.
Calculate his gross profit % for the year. What does this tell us ?
Calculate his net profit for the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9cad10d6-7f17-41c4-9797-4437b73be31d%2Fe7617758-1b3d-4b67-b37e-f2488e1e87ba%2Fdp399y8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3
•
Sipho runs a bottle store. He prices everything so as to give him a gross profit % of 50%
These figures are for his year ended 30 June 1995 All figures are in Rands
For the purposes of this exercise, ignore VAT
Cash received
Rent paid
Vehicle running expenses paid
Purchases of stock for the year
Wages paid
Electricity paid
Insurance paid
Advertising paid
Interest paid
Drawings
Opening stock
Closing stock
149,705
3,600
2.400
82,656
8,580
1.313
600
284
1,200
30,000
2,902
3,146
The only fixed asset is a van which Sipho bought last year for R30,000. He expects it to
last him for 5 years.
His June electricity bill of R118 was only paid in July.
Sipho very rarely sells on credit. However, a very close friend, who was waiting for some
money, was having a party during the last week of June so Sipho agreed that he could
have credit for 3 weeks. The bill came to R1,243.
•
Calculate his gross profit for the year.
Calculate his gross profit % for the year. What does this tell us ?
Calculate his net profit for the year.
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