(20 Marks) QUESTION 1 REQUIRED Use the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for July and August 2021 (using separate monetary columns for each month). INFORMATION The budgeted Statement of Comprehensive Income of Ryobi Enterprises for the year ended 30 June 2021 is as follows: Sales Cost of sales Gross profit Rent income R 3 000 000 (2 000 000) 1 000 000 108 000 1 108 000 Operating expenses Salaries Advertising Bad debts Depreciation Other operating expenses Operating profit Interest expense Net profit (720 000) 360 000 120 000 60 000 30 000 150 000 388 000 (38 000) 350 000 Additional information 1. 2. 3. 3456 6. 7. 8. 9. Sales for the period 01 April to 30 June 2021 are budgeted at R240 000 per month. Sales for July 2021 are expected to be 5% greater than the sales for June 2021. A decrease of 10% is expected during August 2021 on the July 2021 sales. Cash sales account for 40% of the total sales, with the balance of the sales on credit. Five percent (5%) of the credit sales are expected to be irrecoverable and these are written off three months after the sale. The existing mark-up percentage on cost will be maintained during July and August 2021. The rental agreement makes provision for an increase of 12% each year, effective from 01 July. Salaries are expected to increase by 10% with effect from 01 August 2021. The amount spent on advertising each month is calculated as a percentage of sales. The percentage for the period ended 30 June 2021 will be maintained in the next financial year. Depreciation for the year ended 30 June 2021 was calculated as a percentage on the cost price of the equipment, R200 000. New equipment with a cost price R60 000 will be purchased on 01 July 2021. Other operating expenses are spread evenly throughout the year and are expected to remain unchanged in the new financial year. Repayments towards the loan will result in interest expense dropping by 10% per month. Interest expense for June 2021 is R3 000