The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual...

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The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at Instructions
(a) Is Zetar using a multiple-step or a single-step income statement format? Explain how you made your determination.
(b) Instead of ?ointerest expense,?? what label does Zetar use for interest costs that it incurs?
(c) What is the approximate tax rate of Zetar’s ?oTax on profit from continuing activities???
(d) Using the notes to the company’s financial statements, explain what each of the following are:
(1) Adjusted results.
(2) One-off items

David · Accepted Answer

1. Zetar is using multi-step income statement format as it is using different steps in order to 
compute the net profit. It had started the income statement with the gross profit, operating 
profit, profit before continuing the operations of the company and then finally leading to 
the net profit of the company.

The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available at Instructions (a) Is Zetar...

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