QUESTION 1 (20 MARKS) Answer the questions from the information provided. 1.1 Use the information provided below to calculate the number of units of Product A that should be produced during July 2023. (4 marks) INFORMATION Norwich Limiteds sales forecasts of Product A for July and August 2023 are as follows: Month Units July 60 000 August 72 000 The companys policy is to maintain an inventory of 20% of the following months sales. 1.2 Use the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for the year ended 31 December 2023 that reflects the gross profit, operating profit, profit before tax and profit after tax. (4 marks) INFORMATION The following reflects the forecasts of ABC Limited for the year ended 31 December 2023: R Sales 4 400 000 Sales returns 80 000 Opening inventory 144 000 Purchases 1 720 000 Purchases returns 40 000 Closing inventory 210 000 Operating expenses 960 000 Interest on fixed deposit 8 000 Interest on long-term borrowings 36 000 Company tax 515 400 1.3 Calculate the annual economic order quantity from the information provided below. (4 marks) INFORMATION The monthly sales of an item is 800 units. The cost is R3 per unit and the unit selling price is R5. The ordering cost amounts to R40 per order and the holding cost per unit is equal to 20% of the unit cost of the item. 1.4 Use the information given below to determine the cost (as a percentage, expressed to two decimal places) to Montclair Traders of not accepting the discount. (4 marks) INFORMATION Protec Wholesalers usual credit terms to Montclair Traders are 30 days but the supplier is prepared to allow a discount of R114 if the account of R3 800 is settled within 12 days. 1.5 Calculate the value of inventories as at 31 July 2022 from the information provided below. (4 marks) INFORMATION The following information applies to Rico Traders as at 31 July 2022, the end of the financial year: Current ratio = 2.5:1 Acid test ratio = 1.2:1 Current liabilities = R240 000