1.1 REQUIRED Use the information provided below to prepare the following: 1.1.1 Pro Forma Statement of Comprehensive Income for the year ended 31 December 2018 (6 marks) 1.1.2 Pro Forma Statement of Financial Position as at 31 December 2018. (14 marks) INFORMATION MANOR LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 R Sales 5 000 000 Cost of sales (3 500 000) Gross profit 1 500 000 Operating expenses (700 000) Profit before tax 800 000 Income tax (30% of pre-tax profit) (240 000) Profit after tax 560 000 MANOR LTD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 R ASSETS Non-current assets 2 000 000 Fixed/Tangible assets 2 000 000 1 800 000 Current assets Inventories 600 000 Trade and other receivables 800 000 Cash and cash equivalents 400 000 Total assets 3 800 000 EQUITY AND LIABILITIES Shareholders' equity Ordinary share capital (400 000 shares) Retained earnings Non-current liabilities Long-term loan Current liabilities Trade and other payables Income tax payable Total equity and liabilities R 1 800 000 800 000 1 000 000 1 200 000 1 200 000 800 000 780 000 20 000 3 800 000 1) 2) 3) 4) 5) 6) 7) Additional information Sales for the year ended 31 December 2018 are expected to total R5 500 000 Cost of sales and operating expenses are expected to represent the same percentage of sales for the year ended 31 December 2018 as for the previous financial year. An additional 100 000 shares are expected to be issued on 01 June 2018 at R3.50 each. A final dividend of 50 cents per share is expected to be recommended on 31 December 2018 and the dividends are payable during 2019. Cash and cash equivalents must be calculated (balancing figure). Trade and other receivables represent approximately 20% of the annual sales. The company's closing inventory will change directly with changes in sales for the financial year ended 31 December 2018 An old vehicle (Cost price R300 000; Accumulated depreciation R200 000) is expected to be sold for R120 000 on 31 December 2018 and a new vehicle costing R400 000 will be purchased on the same date to replace it. Depreciation for the year ended 31 December 2018 is expected to total R250 000 (and is included in the operating expenses amount). Trade and other payables on 31 December 2017 consisted of trade creditors only. Trade creditors will change directly in response to changes in sales for the financial year ended 31 December 2018. Income tax payable on 31 December 2018 will equal to 10% of the tax liability on the Pro Forma Statement of Comprehensive Income. R200 000 of the long-term loan will be repaid during the financial year ended 31 December 2018. 8) 9) 10) 11)