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REQUIRED Use the information provided below to prepare the following: 2 . 1 Pro Forma Statement of Comprehensive Income for the year ended 3 1
REQUIRED Use the information provided below to prepare the following: Pro Forma Statement of Comprehensive Income for the year ended December using the percentageofsales method. marks Pro Forma Statement of Financial Position as at December marks INFORMATION The following information was provided by Sharpe Ltd to assist with the preparation of the pro forma financial statements for the financial year ended December : SHARPE LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER R Sales Cost of sales Gross profit Expenses Profit before tax Company tax Profit after tax SHARPE LTD STATEMENT OF FINANCIAL POSITION AS AT DECEMBER R ASSETS Noncurrent assets FixedTangible assets Current assets Inventories Accounts receivable Cash Total assets EQUITY AND LIABILITIES Shareholders equity Ordinary share capital Retained earnings Noncurrent liabilities Longterm loan: VIP Bank Current liabilities Accounts payable Company tax payable Total equity and liabilities Additional information Sales for the year ended December are expected to be R Company tax is calculated at of the pretax profit. Company tax payable owing on December will equal to of the tax calculated in the Pro Forma Statement of Comprehensive Income. An old machine Cost price R; Accumulated depreciation R is expected to be sold at carrying value book value on December and a new machine with a cost price of R will be purchased on the same date to replace it Total depreciation for the year ended December is expected to be R The companys closing inventory will change directly with changes in sales for the financial year ended December Accounts receivable represent approximately of the annual sales. The cash balance is expected to remain unchanged. The authorized share capital consists of shares of which have been issued up to December Forty percent of the unissued shares will be sold at R each during July A final dividend of cents per share is expected to be recommended on December on all the issued shares and is payable during R of the loan will be repaid to VIP bank during the financial year ended December Accounts payable will be based on a payment period of days. Credit purchases for are expected to amount to R The cash balance must be calculated balancing figure
REQUIRED
Use the information provided below to prepare the following:
Pro Forma Statement of Comprehensive Income for the year ended December
using the percentageofsales method. marks
Pro Forma Statement of Financial Position as at December marks
INFORMATION
The following information was provided by Sharpe Ltd to assist with the preparation of the pro forma financial
statements for the financial year ended December :
SHARPE LTD
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER
R
Sales
Cost of sales
Gross profit
Expenses
Profit before tax
Company tax
Profit after tax
SHARPE LTD
STATEMENT OF FINANCIAL POSITION AS AT DECEMBER
R
ASSETS
Noncurrent assets
FixedTangible assets
Current assets
Inventories
Accounts receivable
Cash
Total assets
EQUITY AND LIABILITIES
Shareholders equity
Ordinary share capital
Retained earnings
Noncurrent liabilities
Longterm loan: VIP Bank
Current liabilities
Accounts payable
Company tax payable
Total equity and liabilities
Additional information
Sales for the year ended December are expected to be R
Company tax is calculated at of the pretax profit. Company tax payable owing on December
will equal to of the tax calculated in the Pro Forma Statement of Comprehensive
Income.
An old machine Cost price R; Accumulated depreciation R is expected to be sold at
carrying value book value on December and a new machine with a cost price of R
will be purchased on the same date to replace it Total depreciation for the year ended December
is expected to be R
The companys closing inventory will change directly with changes in sales for the financial year ended
December
Accounts receivable represent approximately of the annual sales.
The cash balance is expected to remain unchanged.
The authorized share capital consists of shares of which have been issued up to
December Forty percent of the unissued shares will be sold at R each during July
A final dividend of cents per share is expected to be recommended on December on all the
issued shares and is payable during
R of the loan will be repaid to VIP bank during the financial year ended December
Accounts payable will be based on a payment period of days. Credit purchases for are
expected to amount to R
The cash balance must be calculated balancing figure
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