This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
You do have the revenue for the cafe. The "Receipts from Cafe" of M 5650 is the revenue generated by the cafe for the year. To prepare an income statement for the cafe, you would use this revenue and subtract the cost of goods sold (Cost of Cafe Sales) to find the gross profit. Step 1: Identify Cafe Revenue. The revenue for the cafe is the "Receipts from Cafe" given in the original problem. Cafe Revenue = M 5650 Step 2: Identify Cost of Cafe Sales. From the previous calculation, the Cost of Cafe Sales was determined as: Cost of Cafe Sales = Opening Inventory of cafe (M 965) + Cafe Purchases (M 4080) = M 5045 Step 3: Prepare the Cafe Income Statement. Assuming no other direct expenses are attributable solely to the cafe (like specific cafe wages or rent), the income statement would look like this: Blackboys Football Club - Cafe \\ Income Statement \\ For the year ended 31 July 2018 Revenue (Receipts from Cafe) && M 5650 \\ Less: Cost of Cafe Sales && M 5045 \\ Gross Profit from Cafe && M 605 3 done, 2 left today. You're making progress.