Projected Statement of Financial Position as at 31 October 2020.

PROJECTED STATEMENT OF FINANCIAL POSITION AS At 31 OCTOBER 2019 R ASSETS Non-current assets 1 200 000 Fixed/Tangible assets 1 200 000 Current assets 700 000 Inventories 500 000 Trade and other receivables 150 000 Cash and cash equivalents 50 000 Total assets 1 900 000 EQUITY AND LIABILITIES Shareholder's equity 640 000 Ordinary share capital 400 000 Retained earnings 240 000 Non-current liabilities 280 000 Long-term loan 280 000 Current liabilities 980 000 Trade and other payables 980 000 Total equity and liabilities 1 900 000Forecasts, assumptions and additional information for the financial year ending 31 October 2020: - Projected sales are R2 400 000 as compared to the estimated R1 800 000 for the financial year ended 31 October 2019. . Manufacturing labour will drop to 22% of sales. . The cost of materials will increase to 16% of sales. . Overhead costs will rise by 5% over the previous financial year, and additional variable costs will be incurred at a rate of 10% of the incremental sales value. - New equipment costing R500 000 will be purchased during February 2020. Total depreciation for the year ended 31 October 2020 is estimated at R180 000. - Selling expenses will rise by R220 000. . General and administrative expenses as a percentage of sales will be unchanged for the year ended 31 October 2020. - Interest expense is estimated to be 3% of sales. Income taxes are estimated at 30% of the pre-tax profits.The business maintains a cash balance of R60 000. Inventory represents 25% of sales. . Trade and other receivables represent 20% of sales. Trade and other payables represent 10% of sales. 60 000 ordinary shares are expected to be issued at R4 each during January 2020. Dividends of R100 000 are expected to be paid. Loan repayments totalling R50 000 are expected to be made during the financial year ended 31 October 2020. The amount of long-term debt required must be calculated