Page 363 - AFM Integrated Workbook STUDENT S18-J19

Answers

Chapter 14

Question 1

The following shows the statement of profit or loss and statement of financial
position for Zed Manufacturing for the years ended 31 December 20X7 and 31
December 20X8:

Summarised statement of profit or loss ($m)
20X7 20X8

Revenue 840 830

Cost of sales 554 591
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Gross profit 286 239

Selling, distribution and admin. expenses 186 182
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Profit before interest 100 57
Interest 6 8

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Profit before tax 94 49
Tax (standard rate 50%) 45 23

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Profit for the year 49 26

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