REQUIRED: Luor Limited had provided the falowing infomation relating to the previous financial year. Use the intormation to prepare the following: 1.1 Pro Forma Statemert of Comprehersive Income for the year ended 31 December 2020. 1.2 Pro Forma Siatement of Financial Position as at 31 December 2020. Where applicable, round of amounts to the nearest Rand. (9 Marks) (11 Marks) INFORMATION: Statement of Comprehensive Income For the year ended 31 December 2019 R Sales Cost of sales Gross proft Operating expenses Depreciation Electricity Insurance Motor repars Rates Rent Salaries and wages Stationery Telephone Cperating proft Interest expense Net proft for the year Tasafon (30%) Net proft after tax 10 200 000 7 140 000) 3 060 000 (1 720 000 43 000 220 000 56 000 22 000 60 000 720 C00 480 000 44 000 75 000 1340 000 (116 000 1224 000 (367 200) 856 800 Statement of Financial Position 31 December 2019 R ASSETS Non-current assets Land and Buildings Motor Vehicles Motor Vehicles at cost 2 514 000 2 200 000 210 000 300 000 Accumulated depreciation on motor vehides Equipment Equipment at cost Accumulated depreciation on equipmert (90 000) 104 000 130 000 (26 000) 1736 000 1020 000 Current Assets Inventores 306 000 410 000 Trade debtors Cash Total assets 4 250 000 3 422 000 EQUITY AND LIABILITIES Ordinary shares Retained earnings 1 000 000 2 422 000 Non-current liabilities Long term loan (ABSA) 420 000 420 000 Current liabilities 408 000 Trade creditors 408 000 Total equity and liabilities 4 250 000 Additional information: Sales for 2020 are expected to increase by 8%. Sales are spread evenly throughout the year. 60% of sales are on credit. Credit sales are collected as follows; o 40% in the month of sale and o 60% one month after the sale. tis expected that the gross profit percentage for 2020 will be the same as in 2019. Closing inventories for 2020 must be calculated using the percentage of sales method. All purchases are on credit. Purchases are spread evenly over the twelve months of the year. Payments to creditors are made as follows: o 50% one month after purchase o 50% two months after purchase Motor vehicles costing R120 000 are expected to be purchased on 1 July 2020. Depreciation is provided at 20% per annum on the cost of motor vehicles and equipment A minimum cash balance of R400 000 must be maintained. Rental expense is expected to increase by 8% with effect from 1 Jan 2020. Salaries will increase by 6% with effect from 1 January 2020. All other operating expenses are expected to increase by 10% for 2020. tis expected that dividends of R50 000 will be declared and paid in December 2020. R120 000 ill be paid to ABSA during 2020. This includes R80 000 in interest. This will be the only interest expense for 2020. The tax rate is expected to remain unchanged at 30% in 2020. Any surpluses on the statement of financial position will be invested in long term financial instruments. Any shortages on the staterment of financial position will be funded by short term extemal creditors. END OF PAPER