The forecasts of Mojo Limited for 2023 for the only product that it manufactures are as follows: Operating expenses R700 000, Interest incomeR25 000 and Profit after tax R176 400. If the company tax is calculated at 30% of the pre-tax profit, how much is the expected gross profit for2023?A. R977 000B. R927 000C. R954 320O D. R904 320MP

The net income is calculated as difference between revenue and expenses. The gross profit is…

me forecasts of Mojo Limited for 2023 for the only product that it manufactures are as follows: Operating expenses R700 000, Interest inca 25 000 and Profit after tax R176 400. If the company tax is calculated at 30% of the pre-tax profit, how much is the expected gross profit f 023? O A. R977 000 OB. R927 000 O C. R954 320 OD. R904 320

me forecasts of Mojo Limited for 2023 for the only product that it manufactures are as follows: Operating expenses R700 000, Interest inca 25 000 and Profit after tax R176 400. If the company tax is calculated at 30% of the pre-tax profit, how much is the expected gross profit f 023? O A. R977 000 OB. R927 000 O C. R954 320 OD. R904 320

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

The forecasts of Mojo Limited for 2023 for the only product that it manufactures are as follows: Operating expenses R700 000, Interest income
R25 000 and Profit after tax R176 400. If the company tax is calculated at 30% of the pre-tax profit, how much is the expected gross profit for
2023?
A. R977 000
B. R927 000
C. R954 320
O D. R904 320
M
P

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