Home
/
Business
/
The following information relates to the activities of Inga Candels for the year ended 31 Oct 202 & multicolumn(1)(|c|)( £ ) Gross profit & 15,000 Motor vehicle expense & 2,000 Rent expense & 4,000 Light and Heat & 1,000 Salaries & 3,000 Interest on loan & 1,000 Trade receivable & 500 What is the entity's Net Profit for the period? £ 4,000 £ 5,000 £ 6,000 £ 4,500 £ 5,500 £ 6,500

Question

The following information relates to the activities of Inga Candels for the year ended 31 Oct 202

 & multicolumn(1)(|c|)( £ ) 
 Gross profit & 15,000 
 Motor vehicle expense & 2,000 
 Rent expense & 4,000 
 Light and Heat & 1,000 
 Salaries & 3,000 
 Interest on loan & 1,000 
 Trade receivable & 500 


What is the entity's Net Profit for the period?
 £ 4,000 
 £ 5,000 
 £ 6,000 
 £ 4,500 
 £ 5,500 
 £ 6,500

The following information relates to the activities of Inga Candels for the year ended 31 Oct 202 & multicolumn(1)(|c|)( £ ) Gross profit & 15,000 Motor vehicle expense & 2,000 Rent expense & 4,000 Light and Heat & 1,000 Salaries & 3,000 Interest on loan & 1,000 Trade receivable & 500 What is the entity's Net Profit for the period? £ 4,000 £ 5,000 £ 6,000 £ 4,500 £ 5,500 £ 6,500

expert verifiedVerification of experts

Answer

4.3316 Voting
avatar
ElizabethProfessional · Tutor for 6 years

Answer

## Step1: <br />Gross profit = £15,000.<br /><br />## Step2:<br />Total Expenses = motor vehicle expense (£2,000) + rent expense (£4,000) + light and heat (£1,000) + salaries (£3,000) + interest on loan (£1,000)<br /> = £11,000.<br /><br />## Step3: <br />Net Profit = £15,000 - £11,000<br /> = £4,000.<br /><br />So, the entity's Net Profit for the period is \( £ 4,000 \).

Explain

## Step1:<br />First, we'll identify gross profit, which is given as £15,000.<br /><br />## Step2:<br />Next, add up all the expenses which are motor vehicle expense, rent expense, light and heat, salaries, and interest on loan.<br /><br />## Step3:<br />Subtract the total expenses from the gross profit to get the net profit. <br /><br />### The formula for this is: <br />### \[\textbf{Net Profit = Gross Profit - Total Expenses}\]
Click to rate:

Hot Questions

More x