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Study the Income Statements of Vitajet Limited for three years provided below and answer the following questions:
1 Interest expense is calculated at 20% per year on a loan that was obtained at the start of 2010. Repayments of R20 000 per year commenced on 01 January 2011. Calculate the loan balance on 31 December 2012.
2 Explain the application of the matching concept in the preparation of an income statement.
3 Comment on the cost of sales over the three year period.
4 Comment on the trends you observe with regard to personnel and rent expenses.
5 How would you interpret the operating profit over the three year period?
INFORMATION
The Income statements of Vitajet Limited for three years are provided below:
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