\begin{tabular}{|l|r|} \hline Bad debts & 2880 \\ \hline Salaries & 280800 \\ \hline Sundry expenses & 64800 \\ \hline Depreciation & 87300 \\ \hline Operating profit & 215100 \\ \hline Interest on investment & 16200 \\ \hline Profit before interest expense & 231300 \\ \hline Interest on loan & 45360 \\ \hline Net profit for the year & 185940 \\ \hline \end{tabular} Additional information: 1. The average monthly sales of the previous financial year are expected to decrease by 15% during August 2014. Thereafter, the amount projected for August 2014 is expected to increase by 25% during September 2014. 2. The gross profit margin of 50% on cost of sales will be maintained. 3. The rental agreement stipulates that the monthly rental is to be increased annually by 10% on 1 August 2014. 4. Interest on investment is received annually on 31 August and spread evenly over the year. The investment will mature on 31 August 2015. 5. On 1 August 2014 R24 000 will be paid off on the loan. Interest on the loan is calculated at 18% p.a. and paid quarterly. 6. An increase of 8% in wages has been approved by management and the Addrional information: 3. The remial agreement sipulates that the monthly remtal is io be locterey arnually by 10% on 1 Augusi 2014. 4. Inecrest on investment is received annually on 31 August and prope evenly over the year. The inverment will mature on 31 Augar angs 5. On 1 August 2014 R24 000 will be paid off ot is calculated at 18% pa. and paid quarterly. trade union and will come into eflect on 1 september 2014. 7. Repairs are expected to increase by 15% in the new financial pear and must be spread evenly over the year. 8. Bad debts should remain constant and must be spread evenly throeghone the year. 9. Depreciation for the coming year is projected to be R 81000 . No fixted antes are expected to be bought or sold during the coming financial year. 10. It is expected that 10% of the bad debts will be recovered durigy the coming year. 11. On average, all other expenses are expected to increase by 15% in the coming year and are spread evenly over the year. ction: 10r2eq uired to prepare the Projected Income Statement for the months of iformation: (1) come Albert Traders \begin{tabular}{|l|r|} \hline Soles Idistributed evenly over the financial year] & 2160000 \\ \hline cost of sales & 1296000 \\ \hline Gross profit & 864000 \\ \hline Other income & 43200 \\ \hline Rent income & 43200 \\ \hline Gross operating income & 907200 \\ \hline Expenses & 692100 \\ \hline Repairs & 7920 \\ \hline Wages & 248400 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Bad debts & 2880 \\ \hline Salaries & 280800 \\ \hline Sundry expenses & 64800 \\ \hline Depreciation & 87300 \\ \hline Operating profit & 215100 \\ \hline Interest on investment & 16200 \\ \hline Profit before interest expense & 231300 \\ \hline Interest on loan & 45360 \\ \hline Net profit for the year & 185940 \\ \hline \end{tabular} Additional information: 1. The average monthly sales of the previous financial year are expected to decrease by 15% during August 2014. Thereafter, the amount projected for August 2014 is expected to increase by 25% during September 2014. 2. The gross profit margin of 50% on cost of sales will be maintained. 3. The rental agreement stipulates that the monthly rental is to be increased annually by 10% on 1 August 2014. 4. Interest on investment is received annually on 31 August and spread evenly over the year. The investment will mature on 31 August 2015. 5. On 1 August 2014 R24 000 will be paid off on the loan. Interest on the loan is calculated at 18% p.a. and paid quarterly. 6. An increase of 8% in wages has been approved by management and the Addrional information: 3. The remial agreement sipulates that the monthly remtal is io be locterey arnually by 10% on 1 Augusi 2014. 4. Inecrest on investment is received annually on 31 August and prope evenly over the year. The inverment will mature on 31 Augar angs 5. On 1 August 2014 R24 000 will be paid off ot is calculated at 18% pa. and paid quarterly. trade union and will come into eflect on 1 september 2014. 7. Repairs are expected to increase by 15% in the new financial pear and must be spread evenly over the year. 8. Bad debts should remain constant and must be spread evenly throeghone the year. 9. Depreciation for the coming year is projected to be R 81000 . No fixted antes are expected to be bought or sold during the coming financial year. 10. It is expected that 10% of the bad debts will be recovered durigy the coming year. 11. On average, all other expenses are expected to increase by 15% in the coming year and are spread evenly over the year. ction: 10r2eq uired to prepare the Projected Income Statement for the months of iformation: (1) come Albert Traders \begin{tabular}{|l|r|} \hline Soles Idistributed evenly over the financial year] & 2160000 \\ \hline cost of sales & 1296000 \\ \hline Gross profit & 864000 \\ \hline Other income & 43200 \\ \hline Rent income & 43200 \\ \hline Gross operating income & 907200 \\ \hline Expenses & 692100 \\ \hline Repairs & 7920 \\ \hline Wages & 248400 \\ \hline \end{tabular}