Study the following Pro-Forma Statement of Comprehensive Income of Dhikim Ltd for the month ending 28 February...
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Finance
Study the following Pro-Forma Statement of Comprehensive Incomeof Dhikim Ltd for the
month ending 28 February 2019.
You will be required to use the information provided to:
2.1 Calculate the following for February 2019.
2.1.1 Cost of Sales (1 mark)
2.1.2 Taxation (1 mark)
2.1.3 Profit after Taxation (1 mark)
2.2 Prepare the Pro-Forma Statement of Comprehensive Income for themonth ending March
2019.
Note: use the format provided for February 2019
Information
Pro-Forma Statement of Comprehensive income of Dhikim Ltd for themonth ending 28
February 2019
R
Sales
400 000
Cost of sales
2.1.1
Gross Profit (25% of sales)
?
Operating Income
50 000
Operating expenses
(120 000)
Operating profit
?
Interest Income
27 000
Interest Expense
(14 000)
Profit before tax
?
Taxation (30%)
2.1.2
Profit after tax
2.1.3
Additional information
- Sales is forecasted to increase by 10% in March 2019
- The Gross Margin for March 2019 remains unchanged from February2019
- Operating Income and Operating Expenses for March 2019 will varyin proportion to sales
from February 2019 (percentage of sales).
- There was no change to interest receipts and payments for March2019 from February
2019
- The tax rate remains the same for March 2019
Study the following Pro-Forma Statement of Comprehensive Incomeof Dhikim Ltd for the
month ending 28 February 2019.
You will be required to use the information provided to:
2.1 Calculate the following for February 2019.
2.1.1 Cost of Sales (1 mark)
2.1.2 Taxation (1 mark)
2.1.3 Profit after Taxation (1 mark)
2.2 Prepare the Pro-Forma Statement of Comprehensive Income for themonth ending March
2019.
Note: use the format provided for February 2019
Information
Pro-Forma Statement of Comprehensive income of Dhikim Ltd for themonth ending 28
February 2019
R | |
Sales | 400 000 |
Cost of sales | 2.1.1 |
Gross Profit (25% of sales) | ? |
Operating Income | 50 000 |
Operating expenses | (120 000) |
Operating profit | ? |
Interest Income | 27 000 |
Interest Expense | (14 000) |
Profit before tax | ? |
Taxation (30%) | 2.1.2 |
Profit after tax | 2.1.3 |
Additional information
- Sales is forecasted to increase by 10% in March 2019
- The Gross Margin for March 2019 remains unchanged from February2019
- Operating Income and Operating Expenses for March 2019 will varyin proportion to sales
from February 2019 (percentage of sales).
- There was no change to interest receipts and payments for March2019 from February
2019
- The tax rate remains the same for March 2019
Answer & Explanation Solved by verified expert
| FEBRUARY.2019 | R | |||
| a | Sales | 400000 | ||
| b=a-c | Cost of sales | 300000 | (400000-100000) | |
| c=a*25% | Gross Profit (25% of sales) | 100000 | (400000*25%) | |
| d | Operating Income | 50000 | ||
| e | Operating expenses | -120000 | ||
| f=c+d+e | Operating profit | 30000 | (100000+50000-120000) | |
| g | Interest Income | 27000 | ||
| h | Interest Expense | -14000 | ||
| i=f+g+h | Profit before tax | 43000 | (30000+27000-14000) | |
| j=i*30% | Taxation (30%) | 12900 | (43000*30%) | |
| k=i-j | Profit after tax | 30100 | (43000-12900) | |
| MARCH.2019 | R | |||
| a | Sales | 440000 | (400000*(1+0.1)) | |
| b=a-c | Cost of sales | 330000 | ||
| c=a*25% | Gross Profit (25% of sales) | 110000 | (440000*25%) | |
| d | Operating Income | 55000 | (50000*(1+0.1) | |
| e | Operating expenses | -132000 | (120000*(1+0.1) | |
| f=c+d+e | Operating profit | 33000 | ||
| g | Interest Income | 27000 | ||
| h | Interest Expense | -14000 | ||
| i=f+g+h | Profit before tax | 46000 | ||
| j=i*30% | Taxation (30%) | 13800 | (46000*30%) | |
| k=i-j | Profit after tax | 32200 | (46000-13800) | |
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