REQUIRED Study the Statement of Comprehensive Income of Asterix Limited for the three-year period provided below and then answer the following questions: 1.1 Explain the change that possibly took place in the financing activities over the three-year period. (2 marks) 1.2 Calculate the other operating expenses for 2022. (2 marks) 1.3 Calculate the expected cost of sales for 2025 if the budgeted sales are R5 000 000 and the gross margin percent for 2024 is maintained. (4 marks) 1.4 Comment on the cost of sales over the three-year period. (4 marks) 1.5 Comment on the trends that you observe regarding personnel expense and rent expense. (4 marks) 1.6 Provide an interpretation of the operating profit over the three-year period. (4 marks) INFORMATION The Statement of Comprehensive Income of Asterix Limited for three years are provided below: ASTERIX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2024 R 2023 R 2022 R Sales 4 000 000 3 100 000 2 400 000 Cost of sales (1 960 000) (1 457 000) (1 080 000) Gross profit 2 040 000 1 643 000 1 320 000 Operating expenses (1 630 200) (1 259 200) ? Personnel 683 000 518 700 382 200 Marketing 147 700 120 900 93 600 Administration 362 700 273 000 214 500 Rent 126 750 109 200 78 000 Other operating expenses 310 050 237 400 ? Operating profit 409 800 383 800 368 500 Interest expense (96 000) (108 000) (120 000) Profit before tax Company tax Profit after tax 313 800 275 800 248 500 (84 726) (74 466) (69 580) 229 074 201 334 178 920
REQUIRED Study the Statement of Comprehensive Income of Asterix Limited for the three-year period provided below and then answer the following questions: 1.1 Explain the change that possibly took place in the financing activities over the three-year period. (2 marks) 1.2 Calculate the other operating expenses for 2022. (2 marks) 1.3 Calculate the expected cost of sales for 2025 if the budgeted sales are R5 000 000 and the gross margin percent for 2024 is maintained. (4 marks) 1.4 Comment on the cost of sales over the three-year period. (4 marks) 1.5 Comment on the trends that you observe regarding personnel expense and rent expense. (4 marks) 1.6 Provide an interpretation of the operating profit over the three-year period. (4 marks) INFORMATION The Statement of Comprehensive Income of Asterix Limited for three years are provided below: ASTERIX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2024 R 2023 R 2022 R Sales 4 000 000 3 100 000 2 400 000 Cost of sales (1 960 000) (1 457 000) (1 080 000) Gross profit 2 040 000 1 643 000 1 320 000 Operating expenses (1 630 200) (1 259 200) ? Personnel 683 000 518 700 382 200 Marketing 147 700 120 900 93 600 Administration 362 700 273 000 214 500 Rent 126 750 109 200 78 000 Other operating expenses 310 050 237 400 ? Operating profit 409 800 383 800 368 500 Interest expense (96 000) (108 000) (120 000) Profit before tax Company tax Profit after tax 313 800 275 800 248 500 (84 726) (74 466) (69 580) 229 074 201 334 178 920
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 17P: Athenian Venues Inc. just reported the following selected portion of its financial statements for...
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Question
Transcribed Image Text:REQUIRED
Study the Statement of Comprehensive Income of Asterix Limited for the three-year period provided below
and then answer the following questions:
1.1
Explain the change that possibly took place in the financing activities over the three-year
period.
(2 marks)
1.2
Calculate the other operating expenses for 2022.
(2 marks)
1.3
Calculate the expected cost of sales for 2025 if the budgeted sales are R5 000 000 and
the gross margin percent for 2024 is maintained.
(4 marks)
1.4
Comment on the cost of sales over the three-year period.
(4 marks)
1.5 Comment on the trends that you observe regarding personnel expense and rent
expense.
(4 marks)
1.6
Provide an interpretation of the operating profit over the three-year period.
(4 marks)
INFORMATION
The Statement of Comprehensive Income of Asterix Limited for three years are provided below:
ASTERIX LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:
2024
R
2023
R
2022
R
Sales
4 000 000
3 100 000
2 400 000
Cost of sales
(1 960 000)
(1 457 000)
(1 080 000)
Gross profit
2 040 000
1 643 000
1 320 000
Operating expenses
(1 630 200)
(1 259 200)
?
Personnel
683 000
518 700
382 200
Marketing
147 700
120 900
93 600
Administration
362 700
273 000
214 500
Rent
126 750
109 200
78 000
Other operating expenses
310 050
237 400
?
Operating profit
409 800
383 800
368 500
Interest expense
(96 000)
(108 000)
(120 000)
Profit before tax
Company tax
Profit after tax
313 800
275 800
248 500
(84 726)
(74 466)
(69 580)
229 074
201 334
178 920
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