Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the information given below. INFORMATION The financial position of Remo Limited

image text in transcribedimage text in transcribed

Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the information given below. INFORMATION The financial position of Remo Limited as at 31 December 2022 is reflected in the following statement: Additional information: Operations for 2023 were projected using the following working assumptions: All sales are on credit and are expected to amount to R10000000. The profit margin (net profit margin) is expected to be 10%. Old equipment with a cost price of R200 000 and accumulated depreciation of R150 000 is expected to be sold for R60 000. New equipment with a cost price of R500 000 will be purchased to replace it. Depreciation is expected to be R300 000 for the year. Other non-current assets remain unchanged. Inventories are expected to be 10% higher than in 2022 . Accounts receivable would be based on a collection period of 73 days. A cash balance of R1750000 is desired. The ordinary share capital balance is expected to remain unchanged. Dividends of 50 cents per share are expected to be paid during 2023 . Mortgage bond payments amounting to R190 000 including interest of R90 000 are expected to be made. Accounts payable are forecasted to be 20% of sales. Other current liabilities will be allowed to fluctuate with seasonal needs (balancing figure)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Accounting And Financial Analysis

Authors: Anil Chowdhury

1st Edition

9788131702024, 9788131776070

More Books

Students also viewed these Accounting questions

Question

Why is it important to match sources and methods of recruitment?

Answered: 1 week ago