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Question 4 REQUIRED Use the information provided below to compile the: 4.1 Pro Forma Statement of Comprehensive Income for the year ended 31 December 2022.

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Question 4 REQUIRED Use the information provided below to compile the: 4.1 Pro Forma Statement of Comprehensive Income for the year ended 31 December 2022. (6 Marks) 4.2Pro Forma Statement of Financial Position as at 31 December 2022. (Note: except where (14 Marks) otherwise stated, the percentage of sales method is not required) INFORMATION SIRIUS LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 SIRIUS LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 Additional information 1. Sales for the year ending 31 December 2022 is expected to increase by 10%. 2. The existing gross profit percentage will be maintained in 2022. 3. Other operating expenses (excluding depreciation) are expected to increase by 8% in 2022. 4. 500000 ordinary shares will be issued on 1 March 2022 at a value of R1.20 each. 5. The company will purchase a property costing R800 000 on 1 July 2022 . A long-term loan will be taken out to fund the purchase. Monthly instalments of R16 828 will be payable on this loan beginning on 31 July. Interest of R43 300 will be paid on this loan for the period 1 July 2022 to 31 December 2022. 6. 10% of the current long-term loan will be repaid during 2022. Interest paid on this loan will amount to R181500 7. New plant and equipment costing R420 000 will be purchased for cash during April 2022. 8. Total depreciation for the year ending 31 December 2022 is expected to amount to R462000. 9. The percentage of sales method must be used for the following items: a. Inventories b. Trade and other receivables c. Trade and other payables 10. Dividends of 10 cents per share will be declared in November 2022 and will be paid in March 2023. 11. Income tax payable is 28% of the tax determined in the Pro Forma Statement of Comprehensive Income. Amounts owing to the South African Revenue Services for balances outstanding on 31 December 2021 will be paid by 31 January 2022. Taxes owing for the year ended 31 December 2022 will be paid by 31 January 2023. 12. A maximum cash balance of R320 000 will be maintained on 31 December 2022. 13. Any excess cash will be invested in long-term financial assets

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