REQUIRED

Use the information provided below to prepare the Pro-forma Statement of Comprehensive

Income of Mentos Limited for the year ended 31 December 2024. Note: The statement must

include the gross profit, operating profit, profit before tax and profit after tax. (10 marks)

INFORMATION

The following budgeted figures have been provided by Mentos Limited for the year ended 31 December 2023:

The following forecasts were made for 2024:

1. Cash sales are expected to increase by 20% whilst credit sales are expected to increase by 30%.

2. The gross margin ratio is expected to increase by 5 percentage points.

3. Administrative and selling expenses will represent the same percentage of sales as for 2023.

4. A new loan will be taken and the interest expense will increase by 30%.

5. The company tax is calculated as a percentage of the profit before tax and the tax rate is the same as

for 2023

Sales (60% cash; 40% credit) Cost of sales Administrative and selling expenses Interest expense R 2 700 000 1 080 000 810 000 30 000 Profit before tax Profit after tax 780 000 569 400