SIRIUS LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 R Sales 7 000 000 Cost of sales (5 040 000) Gross profit 1 960 000 Depreciation (420 000) Other Operating expenses (230 000) Operating profit 1 310 000 Interest on loans (173 500) Profit before tax 1 136 500 Income tax (28%) (318 220) Profit after tax 818 280 SIRIUS LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 R ASSETS Non-current assets 3 800 000 Fixed Assets 3 800 000 Current assets 2 030 000 Inventories 1 050 000 Trade and other receivables 700 000 Cash and cash equivalents 280 000 Total assets 5 830 000 EQUITY AND LIABILITIES Shareholders equity 2 550 000 Ordinary share capital (1 000 000 shares) 1 000 000 Retained earnings 1 550 000 Non-current liabilities 1 735 000 Long term loan 1 735 000 Current liabilities 1 545 000 Trade and other payables 1 260 000 Income tax payable 285 000 Total equity and liabilities 5 830 000 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. 500 000 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 R181 500 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 R462 000. 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.