Compile a common size vertical and horizontal income statement and answer the following questions. Only compile the
Question:
Compile a common size vertical and horizontal income statement and answer the following questions. Only compile the analysis up to "Profit for the year" . (Please note, the Revenue of R 23 746.40 in 2016 and R 18 544.00 in 2015 as per the attached income statement is merely a summary of the retail turnover+ interest income + other income. Do not use it as the turnover number)
Comment on the following (Support your answer with ratio calculations and analyses)
a) Gross profit (3 marks)
b) trading expense (9 marks)
c) Profit before tax ( 3 marks)
d) Return on investments (6 marks)
e) Return on total assets ( 6 marks)
f) Return on total equity (3 marks)
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas