Study the information provided below and:

2.1 Prepare the Pro-Forma Statement of Comprehensive Income for the year ending 31 December 2023

2.2 Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023

INFORMATION Sibiya Projects Statement of Comprehensive Income for the year ended 31 December 2022

R Sales 10 000 000

Cost of sales (5 750 000)

Gross profit 4 250 000

Variable, selling and administrative costs (1 500 000)

Fixed selling and administrative costs (500 000)

Net profit 2 250 000

Statement of Financial Position for the year ended 31 December 2022

ASSETS R

Non-current assets 800 000

Property, plant and equipment 800 000

Current assets 3 400 000

Inventories 1 600 000

Accounts receivable 600 000

Cash 1 200 000

TOTAL ASSETS 4 200 000

EQUITY AND LIABILITIES

Equity 3 760 000

Current liabilities 440 000

Accounts payable 440 000

TOTAL ASSETS AND LIABILITIES 4 200 000

Additional information

A. The sales budget for 2023 is as follows:

First Quarter R2 625 000

Second Quarter R2 750 000

Third Quarter R2 875 000

Fourth Quarter R2 750 000

B. 90% of sales is collected in the quarter of the sale and 10% in the quarter following the sale

C. The gross margin ratio for 2023 is expected to be the same as for 2022.

D. Inventory is purchased in the quarter of the expected sale. 80% of inventory purchases is paid for in the quarter of purchase and 20% is paid for in the quarter following the purchase.

E. The inventories balance at the end of each quarter is expected to be the same as the end of the last quarter of 2022 viz. R1 600 000.

F. Variable selling and administrative expenses will be the same as for 2022 and will include annual depreciation of R160 000 on property, plant and equipment.

G. On 31 December 2023 an old equipment originally costed R180 000 and accumulated depreciation of R150 000 will be traded-in for new vehicle. The new vehicle will cost R400 000 and the trade-in value of the old vehicle is expected to be R50 000.

H. The proprietors drawings for 2023 are estimated to be R1 527 000.

I. The cash balance (bank) must be calculated.