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1. Prepare the Pro Forma Statement of Financial Position as at 31 December 2023. (Ignore the investment opportunities.) STARPUS LMIEE: PLANENG FOR 2023 Staplus Linited

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1. Prepare the Pro Forma Statement of Financial Position as at 31 December 2023. (Ignore the investment opportunities.) STARPUS LMIEE: PLANENG FOR 2023 Staplus Linited is well kown for its focus on austomer satislaction and this is highlighted in the company profle. Their "Aoout Us" page on their website tells a story of service and growh, afl centred around their austamers. This, combined with the excellent quality products offered, has contributed to its success in the markzplace. At the end of 2022 the fixed assets (at camying value) totalled R5 300000 , inventories amounted io F5 200000, R2 100000 was owed by trade debtors, cash in the bank amounted to R400 000, the ordinary share capital balance was R4 500000 , the accumulated undistributed profits amounted to R1 700000 , an amount of R5 900000 was owed to Zap Bank in respect of a long-term loan and 8900000 was owed to the trade creditors. The sales of 5 tarplus Limited for 2022 amounted to F8 000000. The following projections are forecasts were made for 2023 : Machinery with a cost price of R1 000000 and accumulated depreciation of R1 000000 is expected to be scrapped at the end of 2023. Machinery with a cost price of R6 400000 will be purchased to replace it. Total depreciation for 2023 is estimated to be F800 000 . The sales (all on credit) for 2023 are expected to increase by 30%. The gross margin and net profit margin ratios are estimated to be 30% and 15% respectively. Purchases for 2023 (all on credit) are projected at R6600000. Accounts receivable is based on a collection period of 36.5 days. The company expects to show a net increase in cash of R130 000 during 2023. 250000 ordinary shares are expected to be issued at R4 each during January 2023. Dividends of F800,000 are expected to be recommended by the directors at the end of December 2023. The dividends will be paid out during 2024. R1 500000 will be paid to Zap Bank during 2023. This includes R500 000 for interest on loan. Accounts payable must be calculated using the percentage-of sales method. The amount of external funding (non-current debt) required must be calculated. In keeping with the company's growth strategy, the directors have identified wo possible investment opportunities for 2023 viz. Project A and Project B. An investment of R4 000000 is required for each project and a scrap value of R400 000 is anticipated for Project A only. The useful life of each project is estimated to be five years. Project A is expected to generate net profits of R700000 (Year 1), R650000 (Year 2), R600000 (Year 3), R450 000 (Year 4) and R400000 (Year 5). Project B is expected to generate net a net profit of R520 000 per yeat over its useful life. Depreciation is calculated on a straightline basis. The company's cost of capital is predicted to be 15%. The decision of which project to invest

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