From the following trial balance of G foot, you are required to draw up a statement of comprehensive income for the year ending 30 June 2016
	dr	cr
	shs	shs
sales		265,900
purchases	154,870	
Sales and wages	51,400	
Lighting and heating	530	
rent	4,200	
insurance	2,100	
Motor running expenses	4110	
Sundry expenses	412	
buildings	8,5000	
fixtures	1,100	
Accounts receivables	31,300	
Accounts payables		15,910
Cash at bank	14,590	
vans	16,400	
drawings	30,000	
capital		114,202
	396,012	396,012


To prepare a **Statement of Comprehensive Income** for G. Foot for the year ending 30 June 2016, we will follow these steps:

1. **Calculate Gross Profit**:
   \[
   \text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold (COGS)}
   \]
   COGS is primarily the purchases during the year. No closing inventory is mentioned, so we will assume it is accounted for in the purchases figure.

2. **Operating Expenses**:
   We will subtract all operating expenses (salaries, wages, lighting, heating, etc.) from the Gross Profit to find the **Operating Profit**.

3. **Comprehensive Income**:
   The final figure after subtracting all expenses is the **Net Profit** or **Comprehensive Income**.

### **Statement of Comprehensive Income** for G. Foot
For the year ending 30 June 2016:

| **Particulars**                     | **Shs**    | **Shs**   |
|-------------------------------------|------------|-----------|
| **Sales**                           |            | 265,900   |
| **Cost of Goods Sold (Purchases)**  | 154,870    |           |
| **Gross Profit**                    |            | 111,030   |
|                                       |
| **Less Operating Expenses:**        |            |           |
| Sales and Wages                     | 51,400     |           |
| Lighting and Heating                | 530        |           |
| Rent                                | 4,200      |           |
| Insurance                           | 2,100      |           |
| Motor Running Expenses              | 4,110      |           |
| Sundry Expenses                     | 412        |           |
| **Total Operating Expenses**        |            | 62,752    |
| **Operating Profit**                |            | 48,278    |
| **Net Profit (Comprehensive Income)**|            | 48,278    |

### **Explanation:**
- **Gross Profit**: This is calculated by subtracting Purchases from Sales.
- **Operating Expenses**: These are deducted from the Gross Profit to arrive at the **Operating Profit**.
- **Net Profit/Comprehensive Income**: This represents the profit after all operating expenses have been deducted.

If you have any questions or need further details, let me know!

### Additional Questions:
1. How would the inclusion of closing inventory affect the gross profit calculation?
2. Can the cost of depreciation be included if details are available?
3. How would non-operating income, if any, change the profit calculation?
4. Are the capital and drawings related to the Statement of Financial Position instead?
5. What financial ratios can be calculated from this statement?

### Tip:
Always ensure that both revenue and expenses are properly categorized to get an accurate net profit calculation.

From the following trial balance of G. Foot, you are required to draw up a statement of comprehensive income for the year ending 30 June 2016: Sales, Purchases, Sales and wages, Lighting and heating, Rent, Insurance, Motor running expenses, Sundry expenses, Buildings, Fixtures, Accounts receivables, Accounts payables, Cash at bank, Vans, Drawings, Capital.

Prepare a comprehensive income statement for G. Foot for the year ending 30 June 2016. This involves calculating gross profit by subtracting cost of goods sold from sales and deducting operating expenses to find the net profit. Suitable for accounting and finance students.

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