QUESTION ONE $[18$ MARKS$]$

REQUIRED

Use the information provided below to prepare the:

$1\mathrm{.}1$ Pro Forma Statement of Comprehensive Income for the year ended $31$ December $2025.(6$ marks$)$

$1\mathrm{.}2$ Pro Forma Statement of Financial Position as at $31$ December $2025.$

$($Note: except where otherwise stated, the percentage of sales method is not required. $(12$ marks$)$

INFORMATION

NOVUS LIMITED

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2024$

PROFORMA STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER $2024$

Additional information

Sales for the year ending $31$ December $2025$ are expected to amount to $R1650000.$ The gross profit percentage of

$60\%$ will be maintained in $2025.$

New machinery and equipment costing R$150000$ will be purchased during January $2025.$ Total depreciation for the

year ending $31$ December $2025$ is expected to amount to R$145750.$

The following items must be determined using percentage of sales:

a$.$ Operating expenses

b$.$ Inventories

c$.$ Trade and other receivables

d$.$ Trade and other payables.

Dividends for $2025$ are expected to amount to R$80000$ and will be paid during December $2025.$

$100000$ ordinary shares will be issued in $2025$ at R$1$ each.

Income tax payable will be the amount as determined in the Statement of Comprehensive Income.

R$60000$ of the long$-$term loan will be repaid during $2026.$

A cash balance of R$220000$ will be maintained on $31$ December $2025$

Any surplus will be invested in long$-$term financial investments.