QUESTION $1$

$(20$ MARKS$)$

$1\mathrm{.}1$

REQUIRED

Use the information provided below to prepare the Pro$-$forma Statement of Comprehensive

Income of Mentos Limited for the year ended $31$ December $2024.$ Note: The statement must

include the gross profit, operating profit, profit before tax and profit after tax.

$(10$ marks$)$

INFORMATION

The following budgeted figures have been provided by Mentos Limited for the year ended $31$ December $2023$:

R

Sales $(60\%$ cash; $40\%$ credit$)$

$2700000$

Cost of sales

$1080000$

Administrative and selling expenses

$810000$

Interest expense

$30000$

Profit before tax

$780000$

Profit after tax

$569400$

The following forecasts were made for $2024$:

$1.$

Cash sales are expected to increase by $20\%$ whilst credit sales are expected to increase by $30\%.$

$2.$

The gross margin ratio is expected to increase by $5$ percentage points.

$3.$

Administrative and selling expenses will represent the same percentage of sales as for $2023.$

$4.$

A new loan will be taken and the interest expense will increase by $30\%.$

$5.$

The company tax is calculated as a percentage of the profit before tax and the tax rate is the same as for $2023$