Answer ALL questions. $[100$ MARKS$]$

QUESTION $1(20$ Marks$)$

REQUIRED

Study the information provided below and answer the following questions:

$1\mathrm{.}1$ Explain the change that possibly took place during $2022$ in respect of:

$1\mathrm{.}1\mathrm{.}1$ Long$-$term borrowings $(2$ marks$)$

$1\mathrm{.}1\mathrm{.}2$ Property, plant and equipment. $(2$ marks$)$

$1\mathrm{.}2$ Calculate the administrative expenses for $2022.(2$ marks$)$

$1\mathrm{.}3$ Was there a change to the company tax rate of Afrox Ltd during $2022?$ Explain. $(2$ marks$)$

$1\mathrm{.}4$ Critically assess the performance of the company from the information provided

without making use of any ratios. $(8$ marks$)$

$1\mathrm{.}5$ Recommend FOUR $(4)$ ways in which the company can improve its profitability. $(4$ marks$)$

INFORMATION

The Statement of Comprehensive Income and simplified extract of the Statement of Changes in Equity for

Afrox Ltd are provided below:

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER:

$20222021$

R R

Sales $1620000014400000$

Cost of sales $(7020000)(6120000)$

Gross profit $91800008280000$

Other operating income $540000504000$

Distribution expenses $(5400000)(4860000)$

Administrative expenses $??$

Operating profit $21600001944000$

Finance income $198009720$

Finance expenses $(15660)(31680)$

Profit before tax $21641401922040$

Company tax $(649242)(576612)$

Profit after tax $15148981345428$

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED $31$ DECEMBER $2022$

R

Balance on $31$ December $20215220000$

Profit for the year $1514898$

Dividends $(684000)$

Balance on $31$ December $20226050898$

ADDITIONAL INFORMATION

$1.$ Depreciation for the year amounted to:

$2022$: R$720000$

$2021$: R$1080000.$

$2.$ Company tax is calculated as a percentage of the pre$-$tax profit