QUESTION 2 (20 Marks) REQUIRED Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the Statement of Financial Position and additional information provided below:

INFORMATION The financial position of Gatti Limited as at 31 December 2022 is reflected the following statement:

ASSETS	R
Non-current assets	1 400 000
Property, plant and equipment	1 200 000
Fixed deposits	200 000
Current assets	5 800 000
Inventories	3 400 000
Accounts receivable	2 000 000
Cash and cash equivalents	400 000
Total assets	7 200 000
EQUITY AND LIABILITIES
Equity	4 680 000
Ordinary share capital	3 600 000
Retained earnings	1 080 000
Non-current liabilities	720 000
Long-term loan	720 000
Current liabilities	1 800 000
Accounts payable	1 800 000
Total equity and liabilities	7 200 000

Additional information The following must be taken into account for 2023: Sales are forecast at R60 000 000, with a profit margin of 10% and a gross margin of 30%. Fifty percent (50%) of the sales is expected to be for cash and the balance is on credit. The debtor collection period is expected to be 36.5 days. All purchases of inventories are expected to be on credit and are estimated to total R48 000 000. The creditor payment period is estimated to be 73 days. Equipment with a cost price of R8 000 000 is expected to be purchased on 01 July 2023. Total depreciation is expected to be R800 000 for the year. The maturity dates of the fixed deposits are as follows: R80 000 01 May 2023 R120 000 31 May 2025 The loan balance is expected to be reduced by R60 000. The directors are expected to recommend a final dividend of R4 000 000, payable during 2024. A bank balance of 1% of sales is desired. Ordinary share capital will remain unchanged. The amount of external non-current funding required must be calculated (balancing figure).