ebata Limited tatement of Comprehensive Income for the year ended 31 December 2023 \begin{tabular}{|l|c|} \hline Sales & R \\ \hline Cost of sales & 1400000 \\ \hline Gross profit & (812000) \\ \hline Depreciation & 588000 \\ \hline Other Expenses & (82000) \\ \hline Profit before tax & (198800) \\ \hline Income tax (28\%) & 307200 \\ \hline Profit after tax & (86016) \\ \hline \end{tabular} Statement of Financial Position as at 31 December 2023 \begin{tabular}{|l|c|} \hline & R \\ \hline ASSETS & \\ \hline Non-current assets & 1198000 \\ \hline Plant and machinery & 1198000 \\ \hline & \\ \hline Current assets & 504000 \\ \hline Inventories & 210000 \\ \hline Accounts receivable & 168000 \\ \hline Cash and cash equivalents & 126000 \\ \hline Total assets & 1702000 \\ \hline & \\ \hline EQUITY AND LIABILITIES & \\ \hline Equity & 1195984 \\ \hline Ordinary share capital (800 000 shares at R1 each) & 800000 \\ \hline Retained earnings & 395984 \\ \hline & \\ \hline Long term liability & 130000 \\ \hline & \\ \hline Current liabilities & 376016 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline Current assets & 504000 \\ \hline Inventories & 210000 \\ \hline Accounts receivable & 168000 \\ \hline Cash and cash equivalents & 126000 \\ \hline Total assets & 1702000 \\ \hline \multicolumn{2}{|l|}{ EQUITY AND LIABILITIES } \\ \hline Equity & 1195984 \\ \hline Ordinary share capital ( 800000 shares at R1 each) & 800000 \\ \hline Retained earnings & 395984 \\ \hline Long term liability & 130000 \\ \hline Current liabilities & 376016 \\ \hline Accounts payable & 280000 \\ \hline South African Revenue Services & 80416 \\ \hline Current portion of long term borrowings & 15600 \\ \hline Total equity and liabilities & 1702000 \\ \hline \end{tabular} Additional information: 1. Sales for 2024 is expected to increase to R1 540000 . 2. The gross profit percentage for 2024 will be the same as in 2023 . 3. Other expenses will increase by 10% 4. The company will pay company taxation in 2024 at 27%. 5. The company will purchase plant and machinery in 2024 totalling R200 000. Depreciation for 2024 will total R92 000 . 6. The following will be projected using the percentage of sales method in 2024 : a. Inventories b. Accounts receivable c. Accounts payable 7. The cash balance will remain unchanged for 2024 . 8. 200000 ordinary shares will be issued at R1 each in February 2024. 9. R20 000 of the long-term loan will be payable by December 2025. 10. The amount owing to South African Revenue Services on 31 December 2023 will be paid in February 2024. The taxation payable for 2024 will be paid in March 2025 . 11. Dividends of 20 cents per ordinary share will be declared on 31 December 2024 . These dividends will be paid in February 2025. 12. Any surplus funds will be invested in long term financial investments. REQUIRED: 1.1 Compile the budgeted Statement of Comprehensive Income of Sebata Limited for the year ended 31 December 2024. 1.2 Compile the budgeted Statement of Financial Position as at 31 December 2024. Thungela Limited intends acquiring new plant and equipment and has provided the following information: Option 1 The plant and equipment can be acquired at a cost of R1 600000 . This equipment will have a five-year useful life and wil be depreciated on a straight-line basis to its scrap value of R60000. The new equipment will result in increases in net cash inflows as follows: hungela Limited intends acquiring new plant and equipment and has provided the following information: ption 1 The plant and equipment can be acquired at a cost of R1 600000 . This equipment will have a five-year useful life and will be depreciated on a straight-line basis to its scrap value of R60000. The new equipment will result in increases in net cash inflows as follows: Plant and equipment can be imported at a cost of R1 200000 and a further R120 000 will have to be incurred on transport and installation costs. The plant and equipment will have a useful life of four years and will generate net profits of R75 000 per year. The plant and equipment will be depreciated on a straight-line basis over its useful life and will be written down to its scrap value of R100 000 Other information: The company has a cost of capital of 9%. REQUIRED: Note: when discounting cash flows use the discount factors as found in table 1 and table 2 of your module guide 3.1 Calculate the payback period for option 1 and 2 (4 Marks) (The answer must be reflected in years and months) 3.2 Calculate the net present value for option 1 and 2 (6 Marks) 3.3 Calculate the accounting rate of return on average investment for option 1 (5 Marks) (Answer to be rounded to 2 decimal places) 2 Calculate the net present value for option 1 and 2 .3 Calculate the accounting rate of return on average investment for option 1 (Answer to be rounded to 2 decimal places) 3.4 Calculate the internal rate of return for option 2 using the interpolation method assuming that there is no scrap value. (Answer to be rounded to 2 decimal places) (Use interpolation method with two consecutive percentages to calculate the internal rate of return) 3.5 Based on the net present values calculated in 3.2 above, which option should be chosen and why