Prepare Pro Forma Statement of Financial Position as at 31 December 2018 from the information given below. INFORMATION The financial position of ROYCO Limited as at 31 December 2017 appears below: Statement of Financial Position as at 31 December 2017 R ASSETS Non-current assets 600 000 Property, plant and equipment Accumulated depreciation Financial assets: Shares in NTN Limited 1 200 000 (660 000) 60 000 Current assets 4 600 000 Inventories 2 800 000 Accounts receivable 1 080 000 Cash 720 000 Total assets 5 200 000 EQUITY AND LIABILITIES Equity 3 640 000 Ordinary share capital Retained income 2 940 000 700 000 Non-current liabilities 660 000 Mortgage bond 660 000 Current liabilities 900 000 Accounts payable 900 000 Total equity and liabilities 5 200 000 Additional information: Operations for 2018 were projected using the following working assumptions: All sales are on credit and are expected to amount to R4 000 000. The profit margin (net profit margin) is expected to be 20%. Equipment costing R600 000 was due to be purchased on 01 July 2018. Depreciation is expected to amount to R200 000 for the year. The company expects to purchase another 10 000 shares in NTN Limited at R5 per share. Inventories are expected to be 10% higher than at the end of 2017. Accounts receivable are expected to amount to 16% of credit sales. Dividends for the year were estimated at R120 000 and these will be paid during 2019. Mortgage bond repayments amounting to R110 000 (excluding interest) are expected to be made during 2018. Accounts payable are forecasted at 20% of sales. 100 000 ordinary shares are expected to be sold at R5 each. The cash balance must be determined (balancing figure).