1. From the following Profit and Loss Account and Balance sheet of R Plc, prepare the comparative income statement and comparative balance sheet. Interpret your analysis.

Profit and Loss Account

20X8 $	20X9 $	20X8 $	20X9 $
To cost of goods sold ‘’ Operating expenses: ‘’ Administrative expenses ‘’ Selling expenses ‘’ Net profit	500 20 30 150	640 20 40 200	By Sales	700	900
700	900	700	900

Balance Sheet as at 31 December

Liabilities	20X8 $	20X9 $	Assets	20X8 $	20X9 $
Bills payable Tax payable Sundry creditors Debentures Preference share capital Equity Share capital Reserves	50 100 150 100 300 200 200	75 150 200 150 300 200 250	Cash Debtors Stock Land Buildings Machinery Furniture	50 300 100 100 200 250 100	70 450 200 120 180 225 80
1,100	1,325	1,100	1,325

Answer rating: 100% (QA)

Comparative income statement of R PLC Limited Particulars Net Sales Less Cost of goods sold 500 640 ... View the full answer