REQUIRED a$.$ Use the historic and projected financial data provided to prepare a pro forma STATEMENT OF COMPREHENSIVE INCOME for the year ended $28$ February $2025.($Hint: Use the percentage of sales method to estimate critical values except depreciation and interest expenses $($finance cost$),$ which have been estimated by management$).$ Assumptions are the same as for $2024.$ b$.$ Use the projected financial data along with relevant data from the pro forma statement of comprehensive income prepared in a$.$ above to prepare the pro forma STATEMENT OF FINANCIAL POSITION at $28$ February $2025.($Hint: Use the judgemental approach.$)$ c$.$ Will MMC need to obtain external financing to fund the proposed modemisation programme? How do you suggest management finances this? Explain. QUESTION $1$

$(40$ MARKS$)$

The financial statements of Masemola Manufacturing Corporation $($MMC$)$ follow. Statements are for the financial year ending February of each year.

STATEMENT OF COMPREHENSIVE INCOME

Notes

Assume all sales are on credit.

Assume a $365$ day year.

Assume $\backslash (60\backslash \%\backslash )$ of cost of goods sold are purchases. STATEMENT OF FINANCIAL POSITION

ASSETS

Interest in subs

Gross non$-$curre

Less accumulat

Long term rece

Current assets

Inventory

Trades receivable

Cash and cash equivalents

Total assets

EQUITY AND LIABILITIES

Current liabilities

Short term loans

Trade payables

Accruals

TOTAL EQUITY AND LIABILITIES