1.1 Use the information provided below to prepare the Pro Forma Statement of Comprehensive Income of Richmond Limited for the year ended 31 December 2019. Note: The statement must include the gross profit, operating profit, profit before tax and profit after tax. (6 marks) INFORMATION The following budgeted figures have been provided by Richmond Limited for the year ended 31 December 2018 R Sales 2 700 000 Cost of sales 1 080 000 Administrative expenses 540 000 Selling expenses 270 000 Interest expense 54 000 Income tax 226 800 Profit after tax 529 200 1. 2. 3. 4. The following information must be considered for the year 2019: Sales are expected to amount to R3 000 000 The gross margin ratio is expected to drop by 5 percentage points. The income tax rate (30% of the pre-tax profit) remains unchanged. The administrative and selling expenses as a percentage of sales are expected to be 5 percentage points higher during 2019. The interest coverage ratio is expected to be 15 times. 5