Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.2 Prepare the Pro Forma Statement of financial position as at 31 December 2022 from the (15 marks) information given below. INFORMATION The statement of
1.2 Prepare the Pro Forma Statement of financial position as at 31 December 2022 from the (15 marks) information given below. INFORMATION The statement of financial position of PNA Limited as at 31 December 2021 is reflected below: Statement of financial position as at 31 December 2021 ASSETS Non-current assets 600 000 EQUITY auty 20 000 200 000 LIABLITIES 1640 000 940 000 700.000 Mongage bond Cument Sabities 360 000 360 000 3200 000 900 000 Chider Oher sumen bes Total aquity and abilities 200 000 2 100 000 5200 000 Additional information: The following projections were made for 2022: 1 All sales are on credit and are expected to amount to R4 000 000 for 2022, R400 000 greater than the sales for 2021. Total purchases (all credit) are forecasted at R5 000 000. The profit margin (net profit margin) is expected to be 10%. A vehicle with a cost price of R600 000 is due to be purchased during February 2022. Equipment with a cost price of R60 000 and accumulated depreciation of R40 000 is expected to be sold on 30 June 2022. Depreciation is estimated to be R200 000 for the year Fifty percent (50%) of the shares in Avis Ltd are expected to be sold for R2.40 each The values of inventories and accounts receivable must be determined using the percentage-of-sales method The cash balance on 31 December 2022 is expected to be 10% less than the balance on 31 December 2021 Dividends for the year are estimated at R240 000 and these will be paid during 2023. Mortgage bond debit orders are expected to total R90 000, including interest of R40 000 Accounts payable will be based on a payment period of 73 days. The ordinary share capital balance is expected to remain unchanged Other current labile I be allowed to fluctuate with seasonal needs (.e. balancing figure)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started