Calculate Net Revenue.

Hey Junior, good to see you again. Here is the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019. Step 1: Calculate Net Revenue. Net Revenue is calculated by subtracting sales returns from total sales. Sales = 400,000 Sales Returns = 10,000 Net Revenue = 400,000 - 10,000 = 390,000 Step 2: Calculate Cost of Goods Sold (COGS). COGS is calculated as Opening Inventory + Net Purchases - Closing Inventory. Opening Inventory = 30,000 Purchases = 250,000 Purchases Returns = 5,000 Carriage Inwards = 5,000 Closing Inventory = 40,000 Net Purchases = Purchases - Purchases Returns + Carriage Inwards Net Purchases = 250,000 - 5,000 + 5,000 = 250,000 Cost of Goods Sold = Opening Inventory + Net Purchases - Closing Inventory Cost of Goods Sold = 30,000 + 250,000 - 40,000 = 240,000 Step 3: Calculate Gross Profit. Gross Profit is Net Revenue minus Cost of Goods Sold. Gross Profit = 390,000 - 240,000 = 150,000 Step 4: Calculate Other Income. Other Income includes Rent Received and Interest Income. Rent Received = 2,500 Interest Income on Fixed Deposit = 1,500 Total Other Income = 2,500 + 1,500 = 4,000 Step 5: Calculate Total Operating Expenses. Operating expenses include salaries, utilities, insurance, advertising, repairs, depreciation, and bad debts. Salaries and Wages = 25,000 Utilities = 4,000 Insurance = 2,000 Advertising = 3,000 Repairs and Maintenance = 1,500 Depreciation Expense, Office Equipment = 5,000 Depreciation Expense, Motor Vehicles = 10,000 Depreciation Expense, Land and Buildings = 10,000 Bad Debts = 1,200 Total Operating Expenses = 25,000 + 4,000 + 2,000 + 3,000 + 1,500 + 5,000 + 10,000 + 10,000 + 1,200 = 64,700 Step 6: Calculate Profit from Operations. Profit from Operations is Gross Profit plus Other Income minus Total Operating Expenses. Profit from Operations = 150,000 + 4,000 - 64,700 = 89,300 Step 7: Calculate Finance Costs. Finance costs include interest expense. Interest Expense = 1,000 Step 8: Calculate Profit Before Tax. Profit Before Tax is Profit from Operations minus Finance Costs. Profit Before Tax = 89,300 - 1,000 = 88,300 Step 9: Calculate Profit for the year and Total Comprehensive Income. There is no income tax expense or other comprehensive income items provided. Profit for the year = 88,300 Total Comprehensive Income for the year = 88,300 Here is the Statement of Profit or Loss and Other Comprehensive Income: |l|r| VSE Merchandisers & \\ Statement of Profit or Loss and Other Comprehensive Income & \\ For the year ended 31 December 2019 & Amount () \\ Revenue & 39