1 1 Prepare The Pro Forma Statement Of Comprehensive Income Of Casper Ltd For The Year Ended 30 June 2023 Information C 1 (176.57 KiB) Viewed 37 times
1 1 Prepare The Pro Forma Statement Of Comprehensive Income Of Casper Ltd For The Year Ended 30 June 2023 Information C 2 (58.76 KiB) Viewed 37 times
1.1 Prepare the Pro Forma Statement of Comprehensive Income of Casper Ltd for the year ended 30 June 2023. INFORMATION Casper Ltd, a manufacturing concem, has started with its financial planning for the 12 months commencing 01 July 2022. The projected sales value is R1 500 000 as compared to the estimated R1 000 000 for the financial year ended 30 June 2022. The estimates of the operating results for the current year are shown in the projected statement of comprehensive income below. The percentage-of-sales for some items is reflected. CASPER LTD PRO FORMA STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022 Sales Cost of sales Labour Materials Manufacturing overheads Depreciation Gross profit Operating expenses Selling expenses General and administrative expenses Operating profit Interest expense Profit before tax Company tax Profit after tax 1 000 000 (600 000) 210 000 180 000 170 000 40 000 400 000 (210 000) 100 000 110 000 190 000 0 190 000 (57 000) 133 000 % of sales 100 21 (10 marks) 18 17 4 10 11 0
Assumptions for the financial year ending 30 June 2023: 1 1 1 1 Manufacturing overheads will rise above the current level by 5%. 1 1 Manufacturing labour will increase to 24% of sales. 1 The cost of materials will increase to 20% of sales. Depreciation will increase by R6 000, reflecting the addition of some production machinery. Selling expenses will rise by R20 000. General and administrative expenses are expected to remain at the same percentage of sales. Company tax is estimated at 30% of pre-tax profits.
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