FINANCIAL PLANNING AND CONTROL UNIT 2 FINANCIAL PROJECTION (ACTIVITIES) QUESTION 1 REQUIRED Use the information provided below to prepare the following: 1.1 Pro Forma Statement of Comprehensive Income for the year ended 31 May 2023 using the percentage-of-sales method. 1.2 Pro Forma Statement of Financial Position as at 31 May 2023. The amount of external funding required must be calculated. (Note: Except where otherwise stated, the percentage-of-salesmethod is not required.) INFORMATION method is not required.) INFORMATION Casio Ltd Statement of Comprehensive Income for the year ended 31 May 2022 Sales Cost of sales Gross profit Expenses Profit before tax Income tax(30%) Profit after tax Statement of Financial Position as at 31 May 2022 ASSETS Non-current assets Fixed/Tangible assets Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Shareholders' equity Ordinary share capital (300 000 shares) Retained earnings Non-current liabilities Long-term loan Current liabilities Trade and other payables Company tax payable Total equity and liabilities \begin{tabular}{|r|} \hline 1300000 \\ \hline 600000 \\ 700000 \\ \hline 800000 \\ \hline 800000 \\ \hline 500000 \\ \hline 488000 \\ 12000 \\ \hline 2600000 \\ \hline \hline \end{tabular} Additional information 1) Sales for the year ended 31 May 2023 is expected to be R3 600000 . 2) A final dividend of 50 cents per share is expected to be recommended on 31 May 2023. 3) Cash and cash equivalents and Ordinary share capital will remain unchanged. 4) Trade and other receivables represent approximately 18% of annual sales. 5) The company's closing inventory will change directly with changes in sales for the financial year ended 31 May 2023. 6) An old machine (Cost price R200 000; Accumulated depreciation R180 000) is expected to be sold at carrying value on 31 May 2023 and a new machine with a cost price of R300 000 will be purchased on the same date to replace it. Total depreciation for the year ended 31 May 2023 is expected to be R120 000 . 7) Trade and other payables will change directly in response to changes in sales for the financial year ended 31 May 2023. 8) Company tax payable (owing) will equal one tenth of the total tax on the Pro Forma Statement 7) Trade and other payables will change directly in response to changes in sales for the financial year ended 31 May 2023. 8) Company tax payable (owing) will equal one tenth of the total tax on the Pro Forma Statement of Comprehensive Income. 9) R200 000 of the long-term loan will be repaid during the financial year ended 31 May 2023