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 February to April INFORMATION Kia Traders Pro Forma Statement of Comprehensive Income for the month ended January R Sales Cost of sales Gross profit Other operating income Rent income Operating expenses Salaries Stationery Advertising Bad debts Insurance Depreciation Other operating expenses Operating profit Interest income on fixed deposit Interest expense Net profit Additional information Fifty percent of the sales each month is expected to be for cash and the balance on credit. Sales for February to April have been forecasted as follows: February less than the January sales March R April more than the March sales The gross margin ratio for January will be maintained during February and March but is expected to be percentage points higher for April Rent income increases by on February each year. Employees are entitled to an increase of in salaries with effect from March Employees will also receive a bonus equal to of their last monthly salary during April Bonus is part of the salary expense. Advertising will be maintained at the existing percentage on sales. Bad debts are calculated at of the credit sales of the previous month. Depreciation is calculated at on cost for all depreciable assets. A vehicle with a cost price of R will be purchased on April Additional insurance of R per year will be required for the new vehicle. The fixed deposit matures on March A repayment of R will be made towards the loan on April Interest is levied at per annum. Stationery purchases are expected to remain the same for February but will decline by each month from March Other operating expenses are expected to increase by per month from February
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