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Topic: Rose Limited presented the Statement of Comprehensive Income below for its most recent financial year. Answer the following questions:
Question 1. Explain the difference between "sales" and "other income".
Question 2 Rose Limited would like to earn a large gross profit by selling its products at a much higher price than its cost. Describe two factors that may prevent it from doing so.
Question 3 Explain how cost of sales, operating expenses and other expenses are different from one another.
Question 4 Explain why cost of sales, operating expenses, other expenses and income tax are listed separately in the Statement of Comprehensive Income rather than being lumped together as one item?
Question 5 Explain why the Statement of Comprehensive Income presented above is inadequate to provide a proper interpretation of the financial result of Rose Limited for the financial year.
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