In addition lo the above, the following information is available: Nif sales and purchases of inventery are on credit. Imventones on 31 Oecember 2020 amounted to R1 300000. Crodit terms of 5/10 net 90 days are grantad by crediors. Credit terms of 60 days are granted to debtors. Dividends declared for the years ended 31 Deccmber 2021 and 2022 smounted to R1 169280 and R1 42000 respectivaly. The finsincal manages of Qtat Limited provided the following forecasts bo 2023: Sales are estimstrd at 8000 unts with a selling prece of R1 800 esch. The manufacturing costs include direct malenals of R460 per unit, dreet labour of RB 16 per unit variable overheads of RI70 per unil and foxed overheads of Ra60 002. Foaed selling and adminietration costs sre estmated ot R2 000000 and the varisble selling costs are estimated ilo be 7.5% of sales. The divectors sro contemplating diversifcation in 2024 by entering the psssenger transport market. This could be advieved through the purchase of a teet of midi buses Ihat are expected to cost RQ 500000 . An additional A500 000 will be spent on impert duties. The cost of operating the buses each year is expected to be R4 100000 and the annval revenues from transporting the psesengers are estimated at R7 000000 . The buses FORMATIVE ASSESSMENT 1 [100 MARKS) Read the case study and answer the questions that follow: OREIT LIMITEO: FINANCIAL PERFORMANCE AND FORECASTING The mission of Orbit Limiled is to achieve is vision by providing an innovative product and cestive custraner espoused by the bosed of directors. At the core of Otbit Limited is its customers. The company is commited these reasons that Onti Limited was able to acheve success in the marketplsce. However, the mansgement has identfisd the need to improve in certain respects. The following are the finsnoal stolements for the past bo jears: In addition lo the above, the following information is available: Nif sales and purchases of inventery are on credit. Imventones on 31 Oecember 2020 amounted to R1 300000. Crodit terms of 5/10 net 90 days are grantad by crediors. Credit terms of 60 days are granted to debtors. Dividends declared for the years ended 31 Deccmber 2021 and 2022 smounted to R1 169280 and R1 42000 respectivaly. The finsincal manages of Qtat Limited provided the following forecasts bo 2023: Sales are estimstrd at 8000 unts with a selling prece of R1 800 esch. The manufacturing costs include direct malenals of R460 per unit, dreet labour of RB 16 per unit variable overheads of RI70 per unil and foxed overheads of Ra60 002. Foaed selling and adminietration costs sre estmated ot R2 000000 and the varisble selling costs are estimated ilo be 7.5% of sales. The divectors sro contemplating diversifcation in 2024 by entering the psssenger transport market. This could be advieved through the purchase of a teet of midi buses Ihat are expected to cost RQ 500000 . An additional A500 000 will be spent on impert duties. The cost of operating the buses each year is expected to be R4 100000 and the annval revenues from transporting the psesengers are estimated at R7 000000 . The buses FORMATIVE ASSESSMENT 1 [100 MARKS) Read the case study and answer the questions that follow: OREIT LIMITEO: FINANCIAL PERFORMANCE AND FORECASTING The mission of Orbit Limiled is to achieve is vision by providing an innovative product and cestive custraner espoused by the bosed of directors. At the core of Otbit Limited is its customers. The company is commited these reasons that Onti Limited was able to acheve success in the marketplsce. However, the mansgement has identfisd the need to improve in certain respects. The following are the finsnoal stolements for the past bo jears