Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determine...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determine the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) (10) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5 445 000 (3 539 250) Cost of sales Gross profit Operating expenses 1905 750 (1 122 000) Income from operations Interest expense 783 750 (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31 December 2020: 3.2.1 Gross margin (3) 3.2.2 Net profit margin (3) 3.2.3 Operating margin (2) 3.2.4 Interest coverage (2) Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determine the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) (10) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5 445 000 (3 539 250) Cost of sales Gross profit Operating expenses 1905 750 (1 122 000) Income from operations Interest expense 783 750 (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31 December 2020: 3.2.1 Gross margin (3) 3.2.2 Net profit margin (3) 3.2.3 Operating margin (2) 3.2.4 Interest coverage (2)
Expert Answer:
Answer rating: 100% (QA)
Projected statement of comprehensive income for the year ended 31 December 2021 Particulars R Sales ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Statement of Comprehensive Income for the year ended 31 December 2010 Debit RM Credit RM Freehold land at cost 4,600,000 Building at cost 9,000,000 Plant and equipment at cost 5,800,000 Motor...
-
Statement of Comprehensive Income for the year ended 31 July 2016 (Extract) R Sales Cost of sales Gross profit Operating expenses Profit from operations Interest income Interest expense Profit before...
-
The summarized statements for the year ended 31 December 2007 for Mat, Rug and P entities are as follows: Statements of comprehensive income for the year ended 31 December 2007 The following...
-
A trial balance was extracted from the books of V Baker, and it was found that the debit side exceeded the credit side by 40. This amount was entered in the suspense account. The following errors...
-
Explain why the utilization factor p for the server in a single-server queueing system must equal 1 = P0, where P0 is the probability of having 0 customers in the system.
-
Sketch within a cubic unit cell the following planes: (a) (011), (b) (112), (c) (102), (d) (131), (e) (111), (f) (122), (g) (123), (h) (013)
-
(a) Draw an energy diagram for the situation shown in Figure 9.11 for the system that comprises Earth and the box. Assume the box keeps moving at constant velocity, and consider the rope to be part...
-
You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What...
-
"Managing Away Bad Habits Team Assignment Organizational Behavior IILeadership Assigned is ashort case from the exercise Managing Away Bad Habits. The task is to develop a turnaround strategy for...
-
On December 31, the Income Summary account of Johnson Company has a Credit balance of $226,000 after revenue of $519,000 and expenses of $293,000 were closed to the account. Gloria Johnson, Drawing...
-
Which of the following statements about Java inheritance is true? A. The diamond problem occurs when a class inherits from multiple classes that have a common ancestor. B. In Java, a subclass can...
-
Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: Cash sales Credit sales Total...
-
1. Devise an algorithm that generates an access control matrix A for any given history matrix H of the Chinese Wall model. 2. ( A publisher wishes to implement a DRM scheme for its digital books....
-
Required Question # 1 (40 marks, How has Pepsi Corporation performed over the 10-year time period from 1981 to 1990? In your critical discussion focus on qualitative and quantitative indicators....
-
2. Prove 2.1 4 2.2 2.3 2-7> 10n, m= n,n 27 by Mathematical Induction that: + 9 < 5m, m 3 1x (n)(n+ 1) ,n 2
-
QUESTION 16 Some people who bought X-Game gaming systems complained about having received defective systems. The industry standard for such gaming systems has been 98% non-defective systems. In a...
-
Write a Clojure script that generates a fractal image. Implement a macro in Clojure that simplifies debugging by printing variable names and their values. Create a web application in Clojure that...
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
An atom loses an electron to another atom. Is this an example of a physical or chemical change? (a) chemical change involving the formation of ions (b) physical change involving the formation of ions...
-
Aluminum ions carry a 3+ charge, and chloride ions carry a 1- charge. What is the chemical formula for the ionic compound aluminum chloride? (a) Al 3 Cl (b) AlCl 3 (c) Al 3 Cl 3 (d) AlCl
-
Why are ores so valuable? (a) They are sources of naturally occurring gold. (b) Metals can be efficiently extracted from them. (c) They tend to occur in scenic mountainous regions. (d) They hold many...
Study smarter with the SolutionInn App