Prepare the pro-forma statement of comprehensive income

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Reference no: EM133612371

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

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

Reference no: EM133612371

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