Prepare the pro-forma statement of comprehensive income

Assignment Help Accounting Basics
Reference no: EM133612371

Question: Use the information provided below to prepare the Pro-forma Statement of Comprehensive Income of Mentos Limited for the year ended 31 December 2024. Note: The statement must include the gross profit, operating profit, profit before tax and profit after tax. (10 marks) INFORMATION The following budgeted figures have been provided by Mentos Limited for the year ended 31 December 2023: R Sales (60% cash; 40% credit) 2 700 000 Cost of sales 1 080 000 Administrative and selling expenses 810 000 Interest expense 30 000 Profit before tax 780 000 Profit after tax 569 400

The following forecasts were made for 2024:

1. Cash sales are expected to increase by 20% whilst credit sales are expected to increase by 30%.

2. The gross margin ratio is expected to increase by 5 percentage points.

3. Administrative and selling expenses will represent the same percentage of sales as for 2023.

4. A new loan will be taken and the interest expense will increase by 30%.

5. The company tax is calculated as a percentage of the profit before tax and the tax rate is the same as for 2023

Reference no: EM133612371

Questions Cloud

Evaluate the project based on the criteria : Evaluate the project based on the criteria of net present value, internal rate of return and pay back period and indicate the correct response
Are same-sex marriage or special protections for housing : Are civil unions, same-sex marriage, or special protections for housing and employment provided?
What are the pros and cons of imperialism : What examples can you cite? What are the pros and/or cons of imperialism? Feel free to pick a side or address both sides of this issue.
Why would the internal rate of return be a weaker criterion : Why would the internal rate of return be a weaker criterion than net present value for assessing projects? Why would the internal rate of return be a weaker
Prepare the pro-forma statement of comprehensive income : Prepare the Pro-forma Statement of Comprehensive Income of Mentos Limited for the year ended 31 December 2024
Discuss how implementing one or more things that you learned : Discuss how implementing one or more things that you've learned may benefit you or those around you and explain why.
Role of rehabilitation in a restorative justice approach : Describe a restorative justice rehabilitation program that is used in both the juvenile and adult criminal justice systems.
Explain why you choose each actor-actress : Explain why you choose each actor/actress. Use at least one example from the text for each person to support your reasoning.
What type of control is used in this firm : workday to make sure the tasks get done. As such, Janna does not need to be directly supervised. What type of control is used in this firm

Reviews

Write a Review

Accounting Basics Questions & Answers

  Present the journal entries that wilson purchasing should

Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual inventory system

  What was the error in Schwei Co net income

In 2020, Schwei Co. overstated ending inventory by $740,000 and understated depreciation by $592,000. What was the error in Schwei Co net income

  What is the role of the company board of directors

What is role of the company's board of directors in controlling management's activities? Why is this particularly important in the finance and investment cycle

  Determine which items reported on income statements

determine which items would be reported on its income statement for the sale-leaseback transaction

  Calculate the gds and tds ratio

Given the following, calculate the GDS and TDS ratio, comment if they are acceptable and why: Gross income $75,000 and Income taxes 20,000

  Calculating the cost of goods sold

1. Determine the correct amounts for 2013 ending inventory, purchases, accounts payable, sales revenue, and accounts receivable 2. Calculate cost of goods sold for 2013 3. What was the effect of the error in ending inventory on 2012 before-tax income..

  Disucss about outlandish executive compensation

Explain why you believe that employees are outraged about outlandish executive compensation while their own pay has been reduced.

  Compute the price of the bonds for maturity dates

Question - Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. Compute the price of the bonds for maturity dates

  Determine the net present value of the expansion project

The net cash flows expected from this investment are $25,000 per year. Determine the net present value of the expansion project

  What amount of loss on factoring should be recognized

The accounts factored had related allowance for doubtful accounts of 200,000. What amount of loss on factoring should be recognized

  The allowance for uncollectible accounts had a balance of

the allowance for uncollectible accounts had a balance of 1400 on january 1 at the beginning of the year. during the

  What is the direct labor price variance for November

During November, Arrow purchased 160,000 pounds of direct materials at a total cost of $304,000. What is the direct labor price (rate) variance for November

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd