Orion SA, an industrial entity with no specified main business activity (case convention), reports for the year: sales revenue 5,200,000; cost of sales 3,100,000; distribution costs 650,000; administrative expenses 420,000; a payment to settle a commercial dispute, a non-recurring item arising from its operating activities, 90,000; interest on a bank loan taken out to raise finance, 120,000; share of profit of an equity-accounted joint venture, 80,000. Classify each item in its category, then calculate the total of the operating category.
- Sales revenue
- 5,200,000
- Cost of sales
- 3,100,000
- Distribution costs
- 650,000
- Administrative expenses
- 420,000
- Payment to settle a commercial dispute
- 90,000
- Interest on the bank loan raised to obtain finance
- 120,000
- Share of profit of the joint venture
- 80,000