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Long-term borrowings Property, plant and equipment.

Dear Tutor can you please help to explain the change that possibly took place during 2017 in respect of:


Long-term borrowings

Property, plant and equipment.

Calculate the administrative expenses for 2017.


INFORMATION

The Statement of Comprehensive Income and simplified extract of the Statement of Changes in Equity for Sinbad Ltd are provided below:

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:

2017 (R) 2016 (R)

Sales 13 500 000 12 000 000

Cost of sales (5 850 000) (5 100 000)

Gross profit 7 650 000 6 900 000

Other operating income 450 000 420 000

Distribution expenses (4 500 000) (4 050 000)

Administrative expenses ? ?

Operating profit 1 800 000 1 620 000

Finance income 16 500 8 100

Finance expenses (13 050) (26 400)

Profit before tax 1 803 450 1 601 700

Company tax (541 035) (480 510)

Net profit 1 262 415 1 121 190



STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017

Balance on 31 December 2016 R 4 350 000

Profit for the year R 1 262 415

Dividends R (570 000)

Balance on 31 December 2017 R 5 042 415


ADDITIONAL INFORMATION

Depreciation for the year amounted to:

2017: R600 000

2016: R900 000.

Company tax is calculated as a percentage of the pre-tax profit.

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