QUESTION 1 REQUIRED Use the following information to prepare the Pro Forma Statement of Financial Position of Hopewell Limited as at 30 June 2020. INFORMATION The Statement of Financial Position of Hopewell Limited as at 30 June 2019 was as follows: Hopewell limited Statement of Financial Position as at 30 June 2019 ASSETS Non-current assets Fixed/Tangible assets 3 400 000 3 400 000 3 224 000 Current assets Inventories Trade and other receivables Cash and cash equivalents 2 160 000 864 000 200 000 6 624 000 Total assets EQUITY AND LIABILITIES 2 176 000 Equity Ordinary share capital Retained earnings 1 260 000 916 000 3 800 000 Non-current liabilities 3 800 000 Long-term loan 648 000 Current liabilities Trade and other payables Total equity and liabilities 648 000 6 624 000 The following must be taken into account to prepare the Statement of Financial Position as at 30 June 2020 Sales for the year ended 30 June 2019 were R4 320 000 and the sales for the year ended 30 June 2020 are estimated to be R7 200 000. The following amounts must be calculated using the percentage-of-sales method: Trade and other receivables Inventories Trade and other payables. Equipment costing R700 000 will be purchased during January 2020. Total depreciation for the year ended 30 June 2020 is expected to amount to R540 000. The company plans to issue 100 000 shares at R6 each during December 2019. The business predicts the profit after tax to equal 10% of sales. Dividends of R320 000 are expected to be proposed on 30 June 2020. These dividends are expected to be paid during August 2020. R600 000 of the existing long-term loan will be repaid during the financial year ended 30 June 2020. A new loan of R1 000 000 is expected to be secured during March 2020. The amount of cash and cash equivalents must be calculated (balancing figure)