Business law with finance background needed

Business law with finance background needed

Question 1 (15 marks): Bloomingdale Florists Pty. Ltd. is an Australian Retail Company which operates a florist shop in Sydney. It is an Australian Resident Private Company for Tax Purposes. It is also a Small Business Entity for tax purposes. The Accounting Profit and Loss Statement for the year ended 30 June 2018 is as follows:

Solution Preview

Taxable Income
Tax type
Sales 600,000 Deductible
Exempt income 10,000
Less: COGS
Opening stock 50,000 Deductible
Purchases 40,000 Deductible
Closing stock 60,000 Deductible
COGS 30,000
Gross Profit 580,000 Deductible

Less: Operating expenses
Advertising 14,000 Deductible
Bank Charges/Fees 5,000 Deductible
Accounting Depreciation 12,000 ND
Fringe benefits tax 5,000 Deductible
Gifts 20,000 ND

(1,039 words)