QUESTION 1 Read the information below and answer the following questions INFORMATION The following statement of comprehe

[answerhappygod]

QUESTION 1Read the information below and answer the following questionsINFORMATIONThe following statement of comprehensive income for the financial year ended 31 December 2021 and the statement offinancial position as at 31 December 2021 have been provided by Midas Enterprises:Statement of comprehensive income for the year ended 31 December 2021RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable selling and administrative expenses (1 500 000)Fixed selling and administrative expenses (500 000)Net profit 2 250 000
Statement of financial position as at 31 December 2021RASSETSNon-current assets 800 000Property, plant and equipment 800 000Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 0004 200 000EQUITY AND LIABILITIESEquity 3 760 000Current liabilities 440 000Accounts payable 440 0004 200 000
Statement of financial position as at 31 December 2021RASSETSNon-current assets 800 000Property, plant and equipment 800 000Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 0004 200 000EQUITY AND LIABILITIESEquity 3 760 000Current liabilities 440 000Accounts payable 440 0004 200 000

Question 1 Read The Information Below And Answer The Following Questions Information The Following Statement Of Comprehe 1 (57.29 KiB) Viewed 11 times

Question 1 Read The Information Below And Answer The Following Questions Information The Following Statement Of Comprehe 2 (59.07 KiB) Viewed 11 times

Question 1 Read The Information Below And Answer The Following Questions Information The Following Statement Of Comprehe 3 (76.57 KiB) Viewed 11 times

SECTION A Answer ALL the questions in this section. QUESTION 1 Read the information below and answer the following questions INFORMATION The following statement of comprehensive income for the financial year ended 31 December 2021 and the statement of financial position as at 31 December 2021 have been provided by Midas Enterprises: 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 [100 MARKS Statement of financial position as at 31 December 2021 R 10 000 000 (5 750 000) 4 250 000 (1 500 000) (500 000) 2 250 000 R 2/14
Statement of financial position as at 31 December 2021 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash EQUITY AND LIABILITIES Equity Current liabilities Accounts payable Additional information: R 800 000 800 000 3 400 000 1 600 000 600 000 1 200 000 4 200 000 3 760 000 440 000 440 000 4 200 000 3/14
Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The sales budget for 2022 is as follows: 1.2 First quarter Second quarter Third quarter Fourth quarter The gross margin ratio for 2022 is expected to be the same as for 2021. 90% of the sales is collected in the quarter of the sale and 10% in the quarter following the sale. Variable selling and administrative expenses will vary in the same ratio to sales as for 2021. 3/14 R2 625 000 R2 750 000 Inventory is purchased in the quarter of the expected sale. Eighty (80%) of inventory purchases is paid for in the quarter of purchase and twenty percent (20%) is paid for in the quarter following the purchase. The proprietor's drawings for 2022 are estimated to be R1 527 000. R2 875 000 The inventories balance at the end of each quarter is expected to be the same as the end of the last quarter of 2021 viz. R1 600 000. The cash balance must be calculated (balancing figure). Use the information provided above to prepare the following for Midas Enterprises: 1.1 Budgeted Statement of Comprehensive Income for the year ended 31 December 2022. Budgeted Statement of Financial Position as at 31 December 2022. R2 750 000 Fixed selling and administrative expenses will be the same as for 2021 and will include annual depreciation of R160 000 on property, plant and equipment. On 31 December 2022 an old vehicle with a cost price of R180 000 and accumulated depreciation of R150 000 will be traded-in for new vehicle. The new vehicle will cost R400 000 and the trade-in value of the old vehicle is expected to be R50 000. (8 marks) (12 marks) 4/14