Prepare the Statement of Profit or Loss for Ekerele Enterprises for the year ended 31st December 2019, using the provided balances and additional information.

You're on a roll — To prepare the Statement of Profit or Loss for Ekerele Enterprises for the year ended 31st December 2019, we will use the provided balances and additional information. Step 1: Calculate Net Sales Net Sales is calculated by deducting Returns Inwards from Sales. Sales = ₦243,120 Returns Inwards = ₦6,860 Net Sales = ₦243,120 - ₦6,860 = ₦236,260 Step 2: Calculate Cost of Goods Sold (COGS) COGS includes opening inventory, purchases, direct costs related to purchases, and direct wages, less returns outwards and closing inventory. Opening Inventory (31st Dec 2018) = ₦8,396 Purchases = ₦152,408 Carriage on Purchases = ₦23,912 Direct Wages = ₦14,468 Returns Outwards = ₦8,460 Closing Inventory (31st Dec 2019, from additional info (a)) = ₦102,800 Cost of Goods Available for Sale = ₦8,396 + ₦152,408 + ₦23,912 + ₦14,468 - ₦8,460 = ₦190,724 Cost of Goods Sold = ₦190,724 - ₦102,800 = ₦87,924 Step 3: Calculate Gross Profit Gross Profit is Net Sales minus Cost of Goods Sold. Gross Profit = ₦2