Year 2024, Forecast Information: Jotec (Pty) Ltd. expects a 21% increase in total revenue, while cost of goods sold and selling and expenses are expected to remain at the same proportion of total revenue as in 2023. Both total plant and equipment and depreciation expense will increase by 18%. Similarly, long-term debt and interest expense is projected to increase by 15%, but the tax rate and number of shares outstanding will remain constant. Additionally accounts receivable, inventory, accounts payable, and notes payable are expected to increase 15%, while common stock and paid-in-capital will increase by 18%. The dividend policy in 2024 will be based on a dividend payout ratio of 40%. Required: Using these projections, prepare the forecasted 2024 Statement for comprehensive income, Statement of Financial Position, and Statement of Cashflows for Jotec (Pty) Ltd. Each statement should be on a separate worksheet. Present your answer in: • Normal view • Formula view (13 marks) (23 marks) QUESTION 2 [36 marks] Jotec (Pty)Ltd. a Tech company is planning to prepare forecasted financial statements for year 2024 based on year 2023 accounting data. Extract for the year ended 2023: Details Total revenue Cost of sales Selling expenses Depreciation expense Interest expense Outstanding shares (50 000 @ R 2.50each) Cash Account receivable Inventory Plant & equipment Accumulated depreciation Average tax rate 2023 (R) 2 077 095 1 958 063 219 511 23 497 39 162 125 000 31 329 321 255 344 619 1 801 347 391 465 28% Additional information: Accounts payable, notes payable, long-term debt, common stock, additional paid-in- capital, and retained earnings represented 12%, 2.5%. 18%, 40.5%, 9% and 18% of total assets, respectively.
Year 2024, Forecast Information: Jotec (Pty) Ltd. expects a 21% increase in total revenue, while cost of goods sold and selling and expenses are expected to remain at the same proportion of total revenue as in 2023. Both total plant and equipment and depreciation expense will increase by 18%. Similarly, long-term debt and interest expense is projected to increase by 15%, but the tax rate and number of shares outstanding will remain constant. Additionally accounts receivable, inventory, accounts payable, and notes payable are expected to increase 15%, while common stock and paid-in-capital will increase by 18%. The dividend policy in 2024 will be based on a dividend payout ratio of 40%. Required: Using these projections, prepare the forecasted 2024 Statement for comprehensive income, Statement of Financial Position, and Statement of Cashflows for Jotec (Pty) Ltd. Each statement should be on a separate worksheet. Present your answer in: • Normal view • Formula view (13 marks) (23 marks) QUESTION 2 [36 marks] Jotec (Pty)Ltd. a Tech company is planning to prepare forecasted financial statements for year 2024 based on year 2023 accounting data. Extract for the year ended 2023: Details Total revenue Cost of sales Selling expenses Depreciation expense Interest expense Outstanding shares (50 000 @ R 2.50each) Cash Account receivable Inventory Plant & equipment Accumulated depreciation Average tax rate 2023 (R) 2 077 095 1 958 063 219 511 23 497 39 162 125 000 31 329 321 255 344 619 1 801 347 391 465 28% Additional information: Accounts payable, notes payable, long-term debt, common stock, additional paid-in- capital, and retained earnings represented 12%, 2.5%. 18%, 40.5%, 9% and 18% of total assets, respectively.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Year 2024, Forecast Information:
Jotec (Pty) Ltd. expects a 21% increase in total revenue, while cost of goods sold
and selling and expenses are expected to remain at the same proportion of total
revenue as in 2023.
Both total plant and equipment and depreciation expense will increase by 18%.
Similarly, long-term debt and interest expense is projected to increase by 15%, but
the tax rate and number of shares outstanding will remain constant.
Additionally accounts receivable, inventory, accounts payable, and notes payable
are expected to increase 15%, while common stock and paid-in-capital will
increase by 18%.
The dividend policy in 2024 will be based on a dividend payout ratio of 40%.
Required:
Using these projections, prepare the forecasted 2024 Statement for comprehensive
income, Statement of Financial Position, and Statement of Cashflows for Jotec (Pty) Ltd.
Each statement should be on a separate worksheet.
Present your answer in:
• Normal view
• Formula view
(13 marks)
(23 marks)
![QUESTION 2
[36 marks]
Jotec (Pty)Ltd. a Tech company is planning to prepare forecasted financial statements
for year 2024 based on year 2023 accounting data.
Extract for the year ended 2023:
Details
Total revenue
Cost of sales
Selling expenses
Depreciation expense
Interest expense
Outstanding shares (50 000 @ R 2.50each)
Cash
Account receivable
Inventory
Plant & equipment
Accumulated depreciation
Average tax rate
2023 (R)
2 077 095
1 958 063
219 511
23 497
39 162
125 000
31 329
321 255
344 619
1 801 347
391 465
28%
Additional information:
Accounts payable, notes payable, long-term debt, common stock, additional paid-in-
capital, and retained earnings represented 12%, 2.5%. 18%, 40.5%, 9% and 18% of total
assets, respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69e5bd9b-d036-438a-a618-f488ed2d4069%2F1407f1b7-859b-4d84-b828-52429570e950%2F5xu3a02_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 2
[36 marks]
Jotec (Pty)Ltd. a Tech company is planning to prepare forecasted financial statements
for year 2024 based on year 2023 accounting data.
Extract for the year ended 2023:
Details
Total revenue
Cost of sales
Selling expenses
Depreciation expense
Interest expense
Outstanding shares (50 000 @ R 2.50each)
Cash
Account receivable
Inventory
Plant & equipment
Accumulated depreciation
Average tax rate
2023 (R)
2 077 095
1 958 063
219 511
23 497
39 162
125 000
31 329
321 255
344 619
1 801 347
391 465
28%
Additional information:
Accounts payable, notes payable, long-term debt, common stock, additional paid-in-
capital, and retained earnings represented 12%, 2.5%. 18%, 40.5%, 9% and 18% of total
assets, respectively.
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