Step 1: Calculate the net profit after tax and interest for the year 2025. The formula for net profit after tax and interest is: Net profit before tax and interest - Interest paid - Taxation From the income statement for Year 2025: Net profit before tax and interest = R40 000 Interest paid = R1 900 Taxation = R3 500 $$ \text{Net profit after tax and interest (2025)} = \text{R}40\,000 - \text{R}1\,900 - \text{R}3\,500 $$ $$ \text{Net profit after tax and interest (2025)} = \text{R}34\,600 $$ The net profit after tax and interest for 2025 is $\boxed{\text{R}34\,600}$. Step 2: Calculate the net profit margin for 2025 for Naledi Dealers. The formula for net profit margin is: $$ \text{Net Profit Margin} = \frac{\text{Net profit after tax and interest}}{\text{Sales}} \times 100\% $$ From Step 1, Net profit after tax and interest for 2025 = R34 600. From the income statement for Year 2025, Sales = R170 000. $$ \text{Net Profit Margin (2025)} = \frac{\text{R}34\,600}{\text{R}170\,000} \times 100\% $$ $$ \text{Net Profit Margin (2025)} = 0.203529... \times 100\% $$ $$ \text{Net Profit Margin (2025)} \approx 20.35\% $$ The net profit margin for 2025 is $\boxed{20.35\%}$. Step 3: Calculate the gross profit margin for 2024 for Naledi Dealers. The formula for gross profit margin is: $$ \text{Gross Profit Margin} = \frac{\text{Gross profit}}{\text{Sales}} \times 100\% $$ From the income statement for Year 2024: Gross profit = R65 000 Sales = R150 000 $$ \text{Gross Profit Margin (2024)} = \frac{\text{R}65\,000}{\text{R}150\,000} \times 100\% $$ $$ \text{Gross Profit Margin (2024)} = 0.433333... \times 100\% $$ $$ \text{Gross Profit Margin (2024)} \approx 43.33\% $$ The gross profit margin for 2024 is $\boxed{43.33\%}$. Step 4: Determine which year was more profitable for Naledi Dealers and give ONE reason. To compare profitability, we use the net profit after tax and interest for both years. From Step 1, Net profit after tax and interest for 2025 = R34 600. Now, calculate the net profit after tax and interest for 2024: From the income statement for Year 2024: Net profit before tax and interest = R30 000 Interest paid = R1 300 Taxation = R2 300 $$ \text{Net profit after tax and interest (2024)} = \text{R}30\,000 - \text{R}1\,300 - \text{R}2\,300 $$ $$ \text{Net profit after tax and interest (2024)} = \text{R}26\,400 $$ Comparing the net profits after tax and interest: Year 2024: R26 400 Year 2025: R34 600 Year 2025 was more profitable. Reason: The net profit after tax and interest for 2025 (R34 600) was higher than for 2024 (R26 400). Step 5: Explain why it was important for Naledi Dealers to draw up an income statement. An income statement is crucial for Naledi Dealers to assess the financial performance of the business over a specific period. It shows whether the business made a profit or a loss, helping management to make informed decisions about operations, pricing, and cost control. Step 6: Explain how Naledi will know if the business is making a loss. Naledi will know the business is making a loss if the total expenses exceed the total income (revenue) for the period. On the income statement, this would be indicated by a negative net profit figure. Step 7: Calculate the total amount of expenses incurred by Naledi's business (Question 1.2). Identify all expense items from the provided list: • Bank charges: R250 • Interest on loan: R12 000 • Advertising: R2 500 • Cost of sales: R128 000 • Fuel: R15 000 • Water and electricity: R2 200 Sum the expenses: $$ \text{Total Expenses} = \text{R}250 + \text{R}12\,000 + \text{R}2\,500 + \text{R}128\,000 + \text{R}15\,000 + \text{R}2\,200 $$ $$ \text{Total Expenses} = \text{R}169\,950 $$ The total amount of expenses incurred by Naledi's business is $\boxed{\text{R}169\,950}$. That's 2 down. 3 left today — send the next one.