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Plz use your own words thx QUESTION 4: Income Statement...

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Accounting

Plz use your own words thx
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QUESTION 4: Income Statement (a) "Income is the same as revenue and gains because they all increase owner's equity." Discuss whether this statement is correct. (5 marks) (b) Discuss how cost of goods sold and gross profit are determined from the income statement (5 marks) Fuji Ltd reports the following facts related to its inventory Opening inventory consists of 7 units at V2,000 each Purchased another 7 units of inventory at V1,000 each during the year Sold 10 units at 13,000 each Required: (1) Calculate the company's gross profit for the current year under both FIFO and LIFO inventory valuation methods. Show all workings (10 marks) Comment on the gross profit that you have calculated under LIFO and FIFO for question 5 (d)0). Why is the gross profit for FIFO different from the gross profit for FIFO? (5 marks) (Total for question 4:25 marks)

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