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Answer ALL questions. [30 MARKS The financial manager of Heidi (Pty) Limited has commenced with the company's financial planning for 2022. However he is in

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Answer ALL questions. [30 MARKS The financial manager of Heidi (Pty) Limited has commenced with the company's financial planning for 2022. However he is in hospital recovering from the Corona virus and the company needs your assistance with the following which have yet to be completed: The pro forma statement of financial position as at 31 December 2021; and An appraisal of investment opportunities for implementation during 2022. QUESTION 1 (15 Marks) REQUIRED Use the information provided below to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. The amount of external non-current funding required must be calculated INFORMATION HEIDI (PTY) LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 R 2 800 000 2 800 000 2 400 000 ASSETS Non-current assets Fixed/Tangible assets Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets 800 000 1 200 000 400 000 5 200 000 EQUITY AND LIABILITIES Equity Ordinary share capital (600 000 shares) 2 600 000 1 200 000 1 400 000 Retained earnings Non-current liabilities Long-term loan Current liabilities Trade and other payables Income tax payable Total equity and liabilities 1600 000 1 600 000 1 000 000 976 000 24 000 5 200 000 Additional information 1) Sales for the year ended 31 December 2021 are expected to total R7 200 000, an increase of R800 000 over the previous year ended 31 December 2020. A profit margin (net profit margin) of 10% is expected. 2) A final dividend of 80 cents per share is expected to be recommended on 31 December 2021. These dividends will be paid during 2022. 3) Cash and cash equivalents and Ordinary share capital are expected to remain unchanged. 4) Trade and other receivables represent approximately 20% of the annual sales. 5) The company's closing inventory will change directly with changes in sales for the financial year ended 31 December 2021. 6) An old machine (Cost price R400 000; Accumulated depreciation R360 000) is expected to be sold at carrying value on 31 December 2021 and a new machine with a cost price of R500 000 will be purchased on the same date to replace it. Total depreciation for the year ended 31 December 2021 is estimated at R240 000. 7) Trade and other payables will change directly in response to changes in sales for the financial year ended 31 December 2021. 8) Income tax payable is likely to equal 10% of the estimated tax of R342 000. 9) R400 000 of the long-term loan will be repaid during the financial year ended 31 December 2021

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