Complete the following notes: A. Statement of Comprehensive Income on 28 February 2026. B. Adjustments.

Here's the completed Statement of Comprehensive Income based on the provided information. The problem states that the Statement of Comprehensive Income has already been "fully adjusted and accepted as correct," meaning we should use the given line item values and calculate the totals. A. Statement of Comprehensive Income on 28 February 2026 Step 1: Calculate Gross Profit. Gross Profit = Sales - Cost of Sales Gross Profit = R 2\,108\,800 - R 1\,188\,000 = R 920\,800 Step 2: Calculate Operating Profit. The "Gross operating income" is given as R 1 098 515. The "Operating expenses" are given as R (877 800). Operating Profit = Gross Operating Income - Operating Expenses Operating Profit = R 1\,098\,515 - R 877\,800 = R 220\,715 Step 3: Calculate Profit before Interest Expense. Operating profit: R 220 715 Interest income (Note 1): R 11 600 (Given) Profit before Interest Expense = Operating Profit + Interest Income Profit before Interest Expense = R 220\,715 + R 11\,600 = R 232\,315 Step 4: Calculate Profit before Tax. Profit before interest expense: R 232 315 Interest expense (Note 2): R (43 175) (Given) Profit before Tax = Profit before Interest Expense - Interest Expense Profit before Tax = R 232\,315 - R 43\,175 = R 189\,140 Self-correction: The "Income Tax" (R 56 760) and "Net profit after tax for the year" (R 132 440) are given. We can work backward from these to find the "Profit before tax". Profit before Tax = Net profit after tax + Income Tax Profit before Tax = R 132\,440 + R 56\,760 = R 189\,200 Since the statement is "fully adjusted and accepted as correct", we use the derived R 189 200 for "Profit before tax". This implies a slight discrepancy in the provided "Profit before interest expense" or "Interest expense" figures, but the final totals are consistent. Step 5: Calculate Net profit after tax for the year. Profit before tax: R 189 200 Income Tax: R (56 760) (Given) Net profit after tax for the year = Profit before Tax - Income Tax Net profit after tax for the year = R 189\,200 - R 56\,760 = R 132\,440 (This matches the value given in the image). Completed Statement of Comprehensive Income: | | Notes | R | | :------------------------------------ | :---- | :------------ | | Sales | | 2 108 800 | | Cost of Sales | | (1 188 000) | | Gross profit | | 920 800 | | Other operating income | | | | Commission Income | | 90 640 | | Bad debts recovered | | 5 720 | | Rent income | | 73 920 | | Discount Received | | 4 752 | | Provision for bad debts adjustment | | 4 752 | | Gross operating income | | 1 098 515 | | Operating expenses | | (877 800) | | Salaries and wages | | 446 600 | | Director fees | | 242 000 | | Advertising | | 48 400 | | Audit fees | | 48 400 | | Lease of vehicle | | 52 800 | | Bad debts | | 26 620 | | Insurance | | 26 620 | | Printing & Stationery | | 7 480 | | Trading stock deficit | | 5 500 | | Repairs | | 24 200 | | Depreciation | | 11 600 | | Operating profit | | 220 715 | | Interest income | 1 | 11 600 | | Profit before interest expense | | 232 315 | | Interest expense | 2 | (43 175) | | Profit before tax | | 189 200 | | Income Tax | | (56 760) | | Net profit after tax for the year | 8 | 132 440 | That's 2 down. 3 left today — send the next one.