4 (26 marks) Deli Idea Limited was founded in January 2020 which operates Italian family restaurants chain. The business has been doing well for the last two years and the company management is considering expansion into the Japanese fine dining business in early 2022. Deli Idea's Statement of Profit or Loss for 2020 and 2021 financial years are presented below. Statement of Profit or Loss (S'000) 2021 2020 Sales 60,000 50,000 Cost of Sales 36,000 30,000 Gross Profit 24,000 20,000 Expenses: Selling, General & Administrative Expenses 8,400 8,000 Other Expenses 4,000 4,000 Interest Expenses 1,200 1,200 Profit before Tax 10,400 6,800 Profit Tax 2,080 1,360 Net Profit 8,320 5,440 Financial projections of Deli Idea for 2022 financial year with the business expansion: Sales will grow at the same rate as in 2021. Gross profit margin will remain the same as in the last two years. Selling, General and Administrative expenses will increase by 5%. Other expenses will increase by 10% for setting up the new Japanese restaurants. Interest expenses in 2020 and 2021 were from $20 million bank loans at an annual interest rate of 6%. Additional loans for $10 million will be borrowed in 2022 at the same interest rate for the new business. Tax rate will remain unchanged from previous years. Required: (a) Prepare Deli Idea's projected Statement of Profit or Loss for 2022 financial year based on the information provided above. (20 marks) (b) List two potential projection errors of the Statement of Profit or Loss prepared in part (a). (6 marks) [Total marks: 26 marks]