Answer to Question #278368 in Financial Math for james

Question

Halwings Group Ltd, a company operating in Kenya has the following information as at 1st December 2020;

i. The company made a profit before tax of Ksh. 14,000,080 in the past 12 months of accounting

ii. The company made a net book loss of Ksh.1,100,050 in the year 2019

iii. The company engaged in consultancy services in the year 2020 where they were paid Ksh. 5,000,000

iv. The company supplied vaatable goods worth Ksh. 3,500,000 and Ksh. 9,000,000 in the years 2019 and 2020 respectively

Answer 1

Profit= Income-expenses

We know the financial results for 2019 and 2020, Ksh.1,100,050 in the year 2019

Ksh. 14,000,080  in the year 2020 respectively.

First, we will write down the financial result for 2019 and 2020.

Then we will write down all the income for which there is initial data: Ksh. 3,500,000 and Ksh. 9,000,000 in the years 2019 and 2020 ( Ksh. 5,000,000, 1 000 000 in 2020) respectively.

Then, using the above formula, we will output expenses: income minus profit.