question B: Interpretation of business performance (40 marks):

  

Appendix B: Financial statements of A & E Enterprise(a) Income Statement for the period ended 31st December 2019-Net Sales:SalesSales returns111,600(1,500)LESS: Cost of sales:<110, 100-Opening inventoryPurchases14,208Carriage inc71,2441,860Purchases returns(2,6 02)LESS: Closing inventory84,710-Gross Profit(18,000)(66.710)43,390Add: Other incomes:LESS: Expenses:43,390Carriage out1,200Salaries & WagesRent & Rates22,6401,824Insurance <1,000Motor expenses ~2,856-Telephone2,624-Electricity996General expenses1,884Net Profit(35,024)8,366

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