3.2 QUESTION 33.1 Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determinethe sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020.(Where applicable round of amounts to the nearest rand)INFORMATION:Calder EnterprisesStatement of Comprehensive Income for the year ended 31 December 2020RSalesCost of sales5 445 000(3 539 250)Gross profitOperating expensesIncome from operationsInterest expense1905 750(1 122 000)783 750(98 900)Profit before tax684 850Income tax(191 758)Profit after tax493 092Additional information:1. Cost of sales is expected to be 60% of sales.2. Operating expenses will increase by 4%.3. Interest expense will increase to R120 000.4. The tax rate will remain at 28%3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31December 2020:3.2.1 Gross margin3.22 Net profit margin3.2.3 Operating margin3.2.4 Interest coverage

The gross profit is calculated as difference between sales and cost of goods sold.

3.1 Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determıne the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5445 000 Cost of sales (3 539 250) Gross profit 1905 750 Operating expenses Income from operations (1 122 000) 783 750 Interest expense (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31

3.1 Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determıne the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5445 000 Cost of sales (3 539 250) Gross profit 1905 750 Operating expenses Income from operations (1 122 000) 783 750 Interest expense (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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