Gce Model Questions Vol1 2017 Financial Accounting Question 8

The following information is available for a company whose records for the year are incomplete: - Cash receipts from customers: \(£120{,}000\) - Cash payments to suppliers: \(£70{,}000\) - Cash payments for operating expenses (excluding salaries): \(£15{,}000\) - Salaries paid: \(£20{,}000\) - Depreciation on plant (straight‑line) for the year: \(£8{,}000\) - Opening stock of raw materials: \(£12{,}000\) - Closing stock of raw materials: \(£9{,}000\) - Purchases of raw materials on credit (not recorded in cash book): \(£30{,}000\) - Sales on credit (not recorded in cash book): \(£50{,}000\) - Bad debts written off: \(£2{,}000\) - Interest received (bank): \(£1{,}200\) - Interest paid on loan: \(£1{,}500\) Using the income‑statement approach, calculate the net profit for the year.