Answer Happy

eratir he o Orred More info Trade payables Accumulated depreciation Cost of goods sold Distribution expenses Interest received Inventories, December 31, 20X8 Inventories, December 31, 20X7 £ 16,500 Owner's equity 18,500 December 31, 20X8 99,200 Revenue 23,200 Administration expenses 1,000 20,300 26,000 Done Print £ 126,100 240,800 37,600 I
Requirement 1 Complete the first section of the income statement. (Show a minus sign before any sub-totals that are to be deducted.) Now we can prepare the second step of the income statement, showing the operating expenses and the operating profit. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures. Negative figures should be entered in brackets.) Gross profit as above The final step of the income statement is to enter other income, then calculate the overall profit for the year. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures.) Operating profit as above Other income: Requirement 2 Compute the average inventories turnover period for the year. First, show the correct formula: (Complete the necessary drop downs.) Average inventories turnover period x 365 Now, enter the appropriate amounts. Calculate the average inventories turnover period to the nearest whole day. (Enter opening inventories first in your calculation of average inventories.) Average inventories turnover period x 365 = x 365 = days Compare this year's rate to last year, when the average inventories turnover period was 96 days. Does this trend suggest improvement or deterioration in average inventories turnover period? When compared to last year's average inventories turnover period of 96 days, the decrease in the average inventories turnover period suggest improvement.