INCOME STATEMENT FOR ALPINE TRADERS FOR 3MONTHS MarchR1 800ACTIVITY 7.16INSTRUCTIONMake use of the following information to prepare a projected Income Statement for Alpine Traders forthe 3 month period 1 January 20.8 to 31 March 20.8.INFORMATION:SUMMARY OF THE INCOME STATEMENT FOR THE YEAR ENDED31 DECEMBER 20.7SalesCost of salesRent IncomeSalaries and WagesAdvertisingInterest on Mortgage LoanDepreciation on equipmentOther sundry expenses720 000480 00012 00096 00018 60024 0007 00055 000 ADJUSTMENTS AND ADDITIONAL INFORMATION:1. Total sales are expected to increase by 10% during 20.8.2. There will be a 100% mark up on cost of sales in the New Year.3. Monthly rent will be increased to R1 300 as from 1 March 20.8.4. Salaries and wages are due to increase by 15% as from 1 January 20.8.5. Management has decided to double the amount to be spent on advertisingduring 20.8.6. A quarter of the capital of the mortgage loan was repaid on 31 December20.7. The rate of interest remains the same for 20.8.7. The annual depreciation on equipment is expected to be R12 000 for 20.8.8. Other sundry expenses are expected to increase by R17 000 during 20.8.ACTIVITY 7 17

Projected Income Statement describes the information about the projection of revenue and expenses…

Make use of the following information to prepare a projected Income Statement for Alpine Traders for the 3 month period 1 January 20.8 to 31 March 20.8. INFORMATION: SUMMARY OF THE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 20.7 Sales Cost of sales Rent Income Salaries and Wages Advertising Interest on Mortgage Loan Depreciation on equipment Other sundry expenses 720 000 480 000 12 000 96 000 18 600 24 000 7 000 55 000

Make use of the following information to prepare a projected Income Statement for Alpine Traders for the 3 month period 1 January 20.8 to 31 March 20.8. INFORMATION: SUMMARY OF THE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 20.7 Sales Cost of sales Rent Income Salaries and Wages Advertising Interest on Mortgage Loan Depreciation on equipment Other sundry expenses 720 000 480 000 12 000 96 000 18 600 24 000 7 000 55 000

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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