QUESTION $4(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the following:

$4\mathrm{.}1$ Budgeted Statement of Comprehensive Income for the year ended $30$ June $2024.(5$ marks$)$

$4\mathrm{.}2$ Budgeted Statement of Financial Position as at $30$ June $2024.(15$ marks$)$

INFORMATION

MARBURG LTD

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $30$ JUNE $2023$

R

Sales $4800000$

Cost of sales $(3600000)$

Gross profit $1200000$

Expenses $(600000)$

Profit before tax $600000$

Company tax $(30\%$ of pre$-$tax profit$)(180000)$

Profit after tax $420000$

MARBURG LTD

STATEMENT OF FINANCIAL POSITION AS AT $30$ JUNE $2023$

R

ASSETS

Non$-$current assets $2100000$

Fixed$/$Tangible assets $2100000$

Current assets $1800000$

Inventories $600000$

Accounts receivable $900000$

Cash and cash equivalents $300000$

Total assets $3900000$

EQUITY AND LIABILITIES R

Shareholders equity $1950000$

Ordinary share capital $(450000$ shares$)900000$

Retained earnings $1050000$

Non$-$current liabilities $1200000$

Long$-$term loan $1200000$

Current liabilities $750000$

Accounts payable $732000$

Company tax payable $18000$

Total equity and liabilities $3900000$

Additional information

$1)$ Sales for the year ended $30$ June $2024$ are budgeted at R$5600000.$ Ninety percent $(90\%)$ of the

sales is expected to be on credit. The gross margin for the year ended $30$ June $2024$ is expected to

increase as goods would be sold at cost plus $40\%.$ The percentage of expenses to sales is expected

to remain unchanged.

$2)$ The authorized share capital of Marburg Limited consists of $550000$ ordinary shares. The unissued

shares are expected to be sold on $02$ January $2024$ at R$3$ each.

$3)$ A final dividend of $16$ cents per share is expected to be recommended on $30$ June $2024$ and is

payable during August $2024.$

$4)$ R$400000$ of the long$-$term loan will be repaid during the financial year ended $30$ June $2024.$

$5)$ Accounts receivable would be based on a collection period of $73$ days.

$6)$ The companys closing inventory will change directly with changes in sales for the financial year

ended $30$ June $2024.$

$7)$ An old delivery vehicle $($Cost price R$600000$; Accumulated depreciation R$540000)$ is expected to be

sold for R$100000$ on $30$ June $2024$ and a new delivery vehicle with a cost price of R$800000$ will be

purchased on the same date to replace it$.$ Total depreciation for the year ended $30$ June $2024$ is

expected to be R$300000.$

$8)$ Accounts payable will change directly in response to changes in sales for the financial year ended $30$

June $2024.$

$9)$ Company tax payable on $30$ June $2024$ is expected to equal to $10\%$ of the total tax reflected on the

Budgeted Statement of Comprehensive Income.

$10)$ Cash and cash equivalents must be calculated $($balancing figure$)$