The following information has been extracted from the trial balance of Sipho suppliers.

TRIAL BALANCE OF SIPHO SUPPLIERS AS OF 28 FEBRUARY 2021
	Debit	Credit
Capital		295 189
Land and buildings	250 000
Accounts receivable	58 200
Accounts payable		49 200
Bank overdraft		17 500
Vehicles	145 000
Furniture at cost	100 000
Purchases	71 900
Railage on purchases	7 150
Railage on sales	2 750
Inventory (1/03/2020)	37 000
Sales returns	4 950
Purchase returns		6 000
Discount received		3 600
Rent received		12 000
Telephone	6 820
Sales		365 000
Wages	40 000
Insurance	3 500
Advertising	4 050
Drawings	13 000
Petty cash	4 169
	748 489	748 489

• Inventory as at 28 February 2021 was valued at N$28 500.

1. Determine the value of Net sales 2 marks.

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2. Determine the value of net purchases 2 marks.

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3. Calculate the cost of sales amount 4 marks.

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4. Determine the gross profit 2 marks.

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5. Calculate the other income figure 2 marks

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6. Calculate the value of operating expenses (5 marks)

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7. Determine the net profit or (net loss) 3 marks

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8. Calculate the value of non-current assets 3 marks

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9. Calculate the value of current assets 3 marks

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10. Calculate the value of total assets 2 marks

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11. Calculate the value of owner’s equity 3 marks

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12. Calculate the value of current liabilities 2 marks

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13. Calculate the value of total equity and liabilities 2 marks

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Answer rating: 100% (QA)

1 Value of Net Sales Sale Sales ration 365000 4950 360050 2 Value of net purchases purchase purchase ... View the full answer