(25 Marks) Use the information provided below to answer the following questions: 3.1 Prepare the Pro Forma Statement of Comprehensive Income for the year ended 31 May 2022 using the percentage-of-sales method. (6 marks) 3.2 Prepare the Pro Forma Statement of Financial Position as at 31 May 2022. (14 marks) 3.3 (5 marks) Is the company likely to experience liquidity problems during the financial year ended 31 May 2022? Motivate your answer with the relevant ratios. INFORMATION The following information was provided by Sharpe Ltd, which has an authorised share capital of 350 000 ordinary shares: SHARPE LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2021 R Sales 3 200 000 Cost of sales (2 400 000) Gross profit 800 000 Expenses (400 000) Profit before tax 400 000 Company tax (30% of pre-tax profit) (120 000) Profit after tax 280 000 SHARPE LTD STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2021 R ASSETS Non-current assets 1 400 000 Fixed/Tangible assets 1 400 000 1 200 000 Current assets Inventories 400 000 Accounts receivable 600 000 Cash and cash equivalents 200 000 2 600 000 Total assets 2 600 000 Total assets EQUITY AND LIABILITIES 1 300 000 Shareholders' equity Ordinary share capital (300 000 shares) 600 000 Retained earnings 700 000 800 000 Non-current liabilities 800 000 Long-term loan 500 000 Current liabilities Accounts payable 488 000 Company tax payable 12 000 Total equity and liabilities 2 600 000 Additional information 1. Sales for the year ended 31 May 2022 are expected to total R3 600 000. Total purchases of inventories for resale are forecast at R2 750 000. All purchases and sales are on credit. 2. An old machine (Cost price R200 000; Accumulated depreciation R180 000) is expected to be sold at carrying value on 31 May 2022 and new machinery with a cost price of R800 000 will be purchased on the same date. Total depreciation for the year ended 31 May 2022 is expected to be R140 000. 3. The company's closing inventory is likely to change directly with changes in sales for the financial year ended 31 May 2022 4. Accounts receivable would be based on a collection period of 36.5 days, whilst 73 days accounts payable would be outstanding. 5. Cash and cash equivalents are expected to remain unchanged. 6. The remaining unissued shares are expected to be sold at R2.20 each on 30 June 2021. 7. R200 000 of the long-term loan will be repaid during the financial year ended 31 May 2022. 8. Company tax payable on 31 May 2022 will equal one tenth of the tax liability on the Pro Forma Statement of Comprehensive Income. 9. A final dividend of 50 cents per share is expected to be recommended on 31 May 2022 and will be payable during July 2022 10. The amount of external non-current funding required must be calculated