QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

REQUIRED

Use the information given below to prepare the Pro$-$forma Statement of Comprehensive Income of Impress Limited for the year ended $31$ December $2025.$

Note: The statement must reflect, amongst others, the gross profit, operating profit, profit before tax and profit after tax.

$(10$ Marks$)$

INFORMATION

The following budgeted figures have been provided by Impress Limited for the year ended $31$ December $2024$:

$\backslash$table$[[,$R$],[$Sales$,1000000],[$Cost of sales,$400000],[$Administrative and selling expenses,$300000],[$Interest expense,$20000],[$Company tax,$75600],[$Profit after tax,$204400]]$

The following forecasts are applicable to the year $2025$:

An increase of $20\%$ in sales is expected.

The gross margin ratio is expected to remain unchanged.

Administrative and selling expenses will represent the same percentage of sales as for $2024.$

Loan repayments will result in the interest expense dropping by $15\%.$

The company tax rate $($as a percentage of the pre$-$tax profit$)$ remains unchanged.

$1\mathrm{.}2$

REQUIRED

Prepare the production plan for each month of the period $01$ January to $31$ March $2026.$

$(6$ Marks$)$

INFORMATION

The information given below was supplied by Cresta Manufacturers for the only product that it manufactures.

The expected sales at R$20$ per unit for the period $01$ December $2025$ to $30$ April $2026$ are as follows:

$\backslash$table$[[,$Units$],[$December $2025,30000],[$January $2026,12000],[$February $2026,15000],[$March $2026,18000],[$April $2026,20000]]$

The production volume for each month equals $70\%$ of the current month's sales and $40\%$ of the following month's sales.

$1\mathrm{.}3$

REQUIRED

Study the information given below and calculate the cost $($as a percentage to two decimal places$)$ to Biotech

Stores of not accepting the discount.

$(4$ Marks$)$

INFORMATION

Libra Wholesalers granted credit terms of $60$ days to Biotech Stores. Libra Wholesalers is prepared to allow a discount of R$70$ if Biotech Stores pays the account of R$2000$ in $12$ days' time.