QUESTION 1Read the information below and answer the following questionsINFORMATIONThe following statement of comprehensive income for the financialyear ended 31 December 2021 and the statement offinancial position as at 31 December 2021 have been provided byMidas Enterprises:
Use the information provided below to prepare the following forMidas Enterprises:1.1 Budgeted Statement of Comprehensive Income for the year ended31 December 2022. (8 marks)
Question 1 Read The Information Below And Answer The Following Questions Information The Following Statement Of Comprehe 1 (27.03 KiB) Viewed 10 times
2. 90% of the sales is collected in the quarter of the sale and10% in the quarter following the sale.3. The gross margin ratio for 2022 is expected to be the same asfor 2021.4. Inventory is purchased in the quarter of the expected sale.Eighty (80%) of inventory purchases is paid for in thequarter of purchase and twenty percent (20%) is paid for in thequarter following the purchase.5. The inventories balance at the end of each quarter is expectedto be the same as the end of the last quarter of2021 viz. R1 600 000.6. Variable selling and administrative expenses will vary in thesame ratio to sales as for 2021.7. Fixed selling and administrative expenses will be the same asfor 2021 and will include annual depreciation ofR160 000 on property, plant and equipment.8. On 31 December 2022 an old vehicle with a cost price of R180 000and accumulated depreciation of R150 000will be traded-in for new vehicle. The new vehicle will cost R400000 and the trade-in value of the old vehicle isexpected to be R50 000.9. The proprietor’s drawings for 2022 are estimated to be R1 527000.10. The cash balance must be calculated (balancing figure).
CAN YOU PLEASE FILL IT INTO THIS FORM
Question 1 Read The Information Below And Answer The Following Questions Information The Following Statement Of Comprehe 2 (14.88 KiB) Viewed 10 times
Statement of comprehensive income for the year ended 31 December 2021 Sales Cost of sales Gross profit Variable selling and administrative expenses Fixed selling and administrative expenses Net profit R 10 000 000 (5 750 000) 4 250 000 (1 500 000) (500 000) 2 250 000 Statement of financial position as at 31 December 2021 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash R 800 000 800 000 3 400 000 1 600 000 600 000 1 200 000 4 200 000
EQUITY AND LIABILITIES Equity Current liabilities Accounts payable 3 760 000 440 000 440 000 4 200 000
Additional information: 1. The sales budget for 2022 is as follows: First quarter Second quarter Third quarter Fourth quarter R2 625 000 R2 750 000 R2 875 000 R2 750 000
MIDAS ENTERPRISES STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Gross profit Variable selling and administrative expenses Fixed selling and administrative expenses Net profit Workings (if any) R
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