The treasurer of Reality Ltd has recently developed a computer model to help in the prediction of profits, statement of financial position and cash flows. By entering the expected sales figure and the value of various other parameters, the model will print profit-related data and produce a statement of financial position. Given the following parameters, compose the predicted statement of profit or loss and the statement of financial position produced by the model.

Transcribed Image Text:

Expected sales Gross profit as a percentage of sales Expenses as a percentage of sales Tax rate on profits Dividend payout ratio Debt to equity ratio Current assets as a percentage of cost of sales Current ratio Return on equity $240 000 35% 15% 30% 50% 0.8:1 20% 2:1 15%