Question: Use the information given below to prepare the Pro Forma Statement of Comprehensive Income for the period 0 1 February to 3 0 April 2

Use the information given below to prepare the Pro Forma Statement of Comprehensive Income for the period 01 February to 30 April 2025. INFORMATION Kia Traders Pro Forma Statement of Comprehensive Income for the month ended 31 January 2025 R Sales 1000000 Cost of sales (600000) Gross profit 400000 Other operating income 6000 Rent income 6000406000 Operating expenses (258000) Salaries 120000 Stationery 8000 Advertising 12000 Bad debts 4000 Insurance 10000 Depreciation 8000 Other operating expenses 96000 Operating profit 148000 Interest income (on fixed deposit)400 Interest expense (1200) Net profit 147200 Additional information 1. Fifty percent (50%) of the sales each month is expected to be for cash and the balance on credit. Sales for February to April 2025 have been forecasted as follows: February 20% less than the January sales March R1200000 April 20% more than the March sales 2. The gross margin ratio for January 2025 will be maintained during February and March 2025 but is expected to be 5 percentage points higher for April 2025.3. Rent income increases by 10% on 01 February each year. 4. Employees are entitled to an increase of 10% in salaries with effect from 01 March 2025. Employees will also receive a bonus equal to 90% of their last monthly salary during April 2025.(Bonus is part of the salary expense.)5. Advertising will be maintained at the existing percentage on sales. 6. Bad debts are calculated at 5% of the credit sales of the previous month. 7. Depreciation is calculated at 20% on cost for all depreciable assets. A vehicle with a cost price of R240000 will be purchased on 01 April 2025. Additional insurance of R19200 per year will be required for the new vehicle. 8. The fixed deposit matures on 31 March 2025.9. A repayment of R24000 will be made towards the loan on 01 April 2025. Interest is levied at 15% per annum. 10. Stationery purchases are expected to remain the same for February 2025 but will decline by 10% each month from March 2025.11. Other operating expenses are expected to increase by 5% per month from February 2025

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