1. Prepare an income statement for July according to IAS 1. Explain how you determined each item on this statement, including cost of sales.
2. Explain why the cash balance has increased more than the net profit.
3. Explain why the following amounts are incorrect cost of sales for July:
(i) EUR 14,715 and
(ii) EUR 36,030. Under what circumstances would these amounts be correct cost of sales amounts?
