QUESTION ONE

REQUIRED Use the information provided below to prepare the:

1.1 Pro Forma Statement of Comprehensive Income for the year ended 31 December 2021. (6 marks)

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

R

Sales 7 125 000

Cost of sales (4 275 000)

Gross profit 2 850 000

Operating expenses (including depreciation) (1 521 000)

Operating profit 1 329 000

Interest on loans (116 500)

Profit before tax 1 212 500

Income tax(28%) (339 500)

Profit after tax 873 000