Financial expenses consist of bank charges 1500 and interest expense 6000

Financial expenses consist of bank charges 1500 and

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of prepaid insurance. Financial expenses consist of bank charges $1500 and interest expense $6000. SIRIMON LTD Statement of Profit or Loss 30 June 2016 Revenues Sales Less: Freight-out Discount allowed $1 053 000 $15 000 16 950 31 950 Net sales Other revenues (net) 1 021 050 1 950 Total revenues 1 023 000 Expenses Cost of sales Selling expenses Administrative expenses Financial expenses Dividends 705 000 150 000 73 500 1 500 18 000 Total expenses 948 000 Profit $ 75 000 Required Prepare a corrected fully classified statement of profit or loss. Question 4 (E5.8) The following data are available for Fashionista Hair Accessories Pty Ltd at 31 December: COST NET REALISABLE VALUE Silk ribbons Gold-plated hair clips Crystal hair jewels $21  42019  950 26  880$25  20018  90029  400Required (a) Calculate the lower of cost and net realisable value for Fashionista Hair Accessories total inventory. (b) Why is it important to account for inventory using the lower of cost and net realisable value basis?