Business – 10.1 Financial statements – Statement of financial position | e-Consult
10.1 Financial statements – Statement of financial position (1 questions)
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Profit calculation:
- Sales £150,000
- Less cost of sales £90,000 → £60,000
- Less operating expenses £30,000 → £30,000
- Less interest expense £5,000 → £25,000
- Less tax expense £10,000 → £15,000 profit for the year
Closing retained earnings = Opening retained earnings £40,000 + Profit £15,000 = £55,000.
Partial statement of financial position (excerpt):
| Equity and Liabilities |
| Share capital (unchanged) – £X |
| Retained earnings – £55,000 |