Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax
Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...
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Question
Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax
![INFORMATION
The following figures have been extracted from the Statement of Comprehensive Income of Riptide Limited
for the year ended 31 December 2022:
Sales
Cost of sales
Operating expenses
Interest expense
Company tax
Profit after tax
R
2 000 000
1 200 000
500 000
40 000
78 000
182 000
Additional information
The sales forecast for the year ended 31 December 2023 is R2 400 000.
The gross margin ratio for 2023 is expected to increase to 55%.
Riptide Limited has identified operating expenses and interest expense as varying in proportion to
sales.
Company tax is calculated at 27% of the profit before tax.
1.
2.
3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a99d76e-bc05-429f-9ed3-d782c5fb1421%2Ffa066251-a38d-4fa9-9f7b-f4088ace1c4d%2F8noxmt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:INFORMATION
The following figures have been extracted from the Statement of Comprehensive Income of Riptide Limited
for the year ended 31 December 2022:
Sales
Cost of sales
Operating expenses
Interest expense
Company tax
Profit after tax
R
2 000 000
1 200 000
500 000
40 000
78 000
182 000
Additional information
The sales forecast for the year ended 31 December 2023 is R2 400 000.
The gross margin ratio for 2023 is expected to increase to 55%.
Riptide Limited has identified operating expenses and interest expense as varying in proportion to
sales.
Company tax is calculated at 27% of the profit before tax.
1.
2.
3.
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