Please help me with question 2

F U 5. Contributions to the pension fund are calculated on the normal wages upds TONOWS Employee's deduction 8% Employer's contribution 12% 6. The normal working week is from Monday to Friday for 9 hours per day. Any time worked in addition to this on weekdays and Saturdays is overtime calculated at 1% times the normal rate. 7. Overtime on Sundays is remunerated at double the normal rate. C Enter QUESTION 2 (20) REQUIRED Use the information given below to prepare the following: 2.1 Projected Income Statement for the year ended 31 October 2020. 2.2 Projected Statement of Financial Position as at 31 October 2020 (8) (12) INFORMATION Stanwick Ltd, a manufacturing concern, is making financial plans for one of its projects for the 12 months commencing 01 November 2019. The estimates of the operating results and financial position at the year end 31 October 2019 are shown in the statements below: PROJECTED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2019 R Sales Cost of sales Labour Materials Overheads Depreciation Gross profit Operating expenses Selling expenses General and administrative expenses Operating profit Interest expense Profit before tax Income tax Profit after tax 1 800 000 (1 140 000) 450 000 260 000 370 000 60 000 660 000 (300 000) 138 000 162 000 360 000 (40 000) 320 000 (96 000) 224 000 W E MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT 6 PROJECTED STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2019 S R 3 ASSETS Non-current assets Fixed/Tangible assets Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets 1 200 000 1 200 000 700 000 500 000 150 000 50 000 1 900 000 D EQUITY AND LIABILITIES Shareholders' equity Ordinary share capital Retained earnings Non-current liabilities Long term loan Current liabilities Trade and other payables Total equity and abilities 610 000 400 000 240 000 280 KKO 20 000 980 000 980 000 1900 000 Forecasts, assumptions and additional information for the financial year ending 31 October 2020 Projected sales are R2 400 000 as compared to the estimated R1 800 000 for the financial year ended 31 October 2019, Manufacturing labour will drop to 22% of sales. The cost of materials will increase to 16% of sales. Overhead costs will rise by 5% over the previous financial year, and additional variable costs will be incurred at arate of 10% of the incremental sales value. . New equipment costing R500 000 will be purchased during February 2020. Total depreciation for the year ended 31 October 2020 is estimated at 180 000 Selling expenses will rise by R220 000 . General and administrative expenses as a percentage of sales will be unchanged for the year ended 31 October 2020 Interest expense is estimated to be 3% of sales Income taxes are estimated at 30% of the pre-tax profits The business maintains a cash balance of R60 000 . Inventory represents 25% of sales. Trade and other receivables represent 20% of sales Trade and other payables represent 10% of sales. 60 000 ordinary shares are expected to be issued at R4 each during January 2020 Dividends of R100 000 are expected to be paid. Loan repayments totalling R50 000 are expected to be made during the financial year ended 31 October 2020 The amount of long-term debt required must be calculated . . 61 PROGRAMME HANDBOOK: JANUARY 2020 INTAKE