FSLC Assessment 2

sophie_612sophie_612 LondonRegistered Posts: 102
Hi,

Please can someone help me as to how they got the highlighted answer.

Thanks
Sophie




Comments

  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 247
    edited August 30
    It goes like this:

    Sales: 156580

    Cost of Goods Sold:
    opening inventory 2156 + purchases 130980 - (closing stock 3142 - inventory write down to NRV 258) - tax paid in error 3000 - dividend posted in error 2000 = 125252

    Gross profit:
    Sales 156580 - COGS 125252 = 31328

    Overheads:
    distribution costs 1987 + admin expenses 4358 + legal provision 1000 = 7345

    EBIT:
    Gross profit 31328 - Overheads 7345 = 23983

    Interest and Tax:
    interest 35 + tax 4200 - tax overprovision 150 = 4085

    Net profit:
    EBIT 23983 - interest and tax 4085 = 19898


    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
    sophie_612
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