SECTION A $[100$ MARKS$]$

Answer ALL the questions in this section.

QUESTION $1(20$ Marks$)$

INFORMATION:

Sebata Limited

Statement of Comprehensive Income for the year ended $31$ December $2023$

R

Sales $1400000$

Cost of sales $(812000)$

Gross profit $588000$

Depreciation $(82000)$

Other Expenses $(198800)$

Profit before tax $307200$

Income tax $(28\%)(86016)$

Profit after tax $221184$

Sebata Limited

Statement of Financial Position as at $31$ December $2023$

R

ASSETS

Non$-$current assets $1198000$

Plant and machinery $1198000$

Current assets $504000$

Inventories $210000$

Accounts receivable $168000$

Cash and cash equivalents $126000$

Total assets $1702000$

EQUITY AND LIABILITIES

Equity $1195984$

Ordinary share capital $(800000$ shares at R$1$ each$)800000$

Retained earnings $395984$

Long term liability $130000$

Current liabilities $376016$

Accounts payable $280000$

South African Revenue Services $80416$

Current portion of long term borrowings $15600$

Total equity and liabilities $1702000$

Additional information:

$1.$ Sales for $2024$ is expected to increase to R$1540000.$

$2.$ The gross profit percentage for $2024$ will be the same as in $2023.$

$3.$ Other expenses will increase by $10\%$

$4.$ The company will pay company taxation in $2024$ at $27\%.$

$5.$ The company will purchase plant and machinery in $2024$ totalling R$200000.$ Depreciation for $2024$ will total R$92000.$

$6.$ The following will be projected using the percentage of sales method in $2024$:

a$.$ Inventories

b$.$ Accounts receivable

c$.$ Accounts payable

$7.$ The cash balance will remain unchanged for $2024.$

$8.200000$ ordinary shares will be issued at R$1$ each in February $2024.$

$9.$ R$20000$ of the long$-$term loan will be payable by December $2025.$

$10.$ The amount owing to South African Revenue Services on $31$ December $2023$ will be paid in February $2024.$ The

taxation payable for $2024$ will be paid in March $2025.$

$11.$ Dividends of $20$ cents per ordinary share will be declared on $31$ December $2024.$ These dividends will be paid in

February $2025.$

$12.$ Any surplus funds will be invested in long term financial investments.

REQUIRED:

$1\mathrm{.}1$ Compile the budgeted Statement of Comprehensive Income of Sebata Limited for the year ended $31$

December $2024.$

$(6$ Marks$)$

$1\mathrm{.}2$ Compile the budgeted Statement of Financial Position as at $31$ December $2024.(14$ Marks$)$