Statement of Comprehensive Income for the year ended 31 July 2016 (Extract) R Sales Cost of...

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Statement of Comprehensive Income for the year ended 31 July 2016 (Extract) R Sales Cost of sales Gross profit Operating expenses Profit from operations Interest income Interest expense Profit before tax Income tax 6 000 000 2 400 000 3 600 000 900 000 2 700 000 45 000 ? 2 535 000 760 500 I 1 774 500 14 15 Net profit Required: 1. Interest has been calculated at 6% per year on the amount invested. Assume that there was no change in investments during the year, determine the value of the investment. (4 marks) 2. Calculate the interest expense for the year ended 31 July 2016. (2) Statement of Comprehensive Income for the year ended 31 July 2016 (Extract) R Sales Cost of sales Gross profit Operating expenses Profit from operations Interest income Interest expense Profit before tax Income tax 6 000 000 2 400 000 3 600 000 900 000 2 700 000 45 000 ? 2 535 000 760 500 I 1 774 500 14 15 Net profit Required: 1. Interest has been calculated at 6% per year on the amount invested. Assume that there was no change in investments during the year, determine the value of the investment. (4 marks) 2. Calculate the interest expense for the year ended 31 July 2016. (2)

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1 Amount invested Interest incomepercen... View the full answer