QUESTION $2(20$ Marks$)$REQUIREDUse the information provided below to prepare the following:$2\mathrm{.}1$ Pro Forma Statement of Comprehensive Income for the year ended $31$ December $2024$using the percentage$-$of$-$sales method$\mathrm{.}2\mathrm{.}2$ Pro Forma Statement of Financial Position as at $31$ December $2024.$INFORMATIONThe following information was provided by Sharpe Ltd to assist with the preparation of the pro forma financial statements for the financial year ended $31$ December $2024$:SHARPE LTDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2023(6$ marks$)(14$ marks$)$ SalesCost of sales Gross profit ExpensesProfit before tax Company tax Profit after taxSHARPE LTDSTATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER $2023$ASSETS Non$-$current assets Fixed$/$Tangible assets Current assets InventoriesAccounts receivable CashTotal assetsR$6400000(4400000)2000000(800000)1200000(324000)876000$R$28000002800000240000080000012000004000005200000$ EQUITY AND LIABILITIES Shareholders equity Ordinary share capital Retained earnings Non$-$current liabilities Long$-$term loan: VIP Bank Current liabilities Accounts payable Company tax payable Total equity and liabilitiesAdditional information$2600000120000014000001600000160000010000009600004000052000001.$ Sales for the year ended $31$ December $2024$ are expected to be R$8000000\mathrm{.}2.$ Company tax is calculated at $27\%$ of the pre$-$tax profit. Company tax payable $($owing$)$ on $31$ December $2024$ will equal to $10\%$ of the tax calculated in the $2024$ Pro Forma Statement of ComprehensiveIncome$\mathrm{.}3.$ An old machine $($Cost price R$400000$; Accumulated depreciation R$136000)$ is expected to be sold atcarrying value $($book value$)$ on $31$ December $2024$ and a new machine with a cost price of R$600000$ will be purchased on the same date to replace it$.$ Total depreciation for the year ended $31$ December $2024$ is expected to be R$560000\mathrm{.}4.$ The companys closing inventory will change directly with changes in sales for the financial year ended $31$ December $2024\mathrm{.}5.$ Accounts receivable represent approximately $18\%$ of the annual sales$\mathrm{.}6.$ The cash balance is expected to remain unchanged$\mathrm{.}7.$ The authorized share capital consists of $500000$ shares of which $300000$ have been issued up to $31$December $2023.$ Forty percent $(40\%)$ of the unissued shares will be sold at R$3$ each during July $2024\mathrm{.}8.$ A final dividend of $80$ cents per share is expected to be recommended on $31$ December $2024$ on all theissued shares and is payable during $2025\mathrm{.}9.$ R$200000$ of the loan will be repaid to VIP bank during the financial year ended $31$ December $2024\mathrm{.}10.$ Accounts payable will be based on a payment period of $54\mathrm{.}75$ days. Credit purchases for $2024$ areexpected to amount to R$5700000\mathrm{.}11.$ The cash balance must be calculated $($balancing figure$).$