Question
REQUIRED Prepare the Pro Forma Statement of Fnancial Position as at 31 December 2023from the Statement of Financial Position and additiona information provided below: INFORMATION
REQUIRED Prepare the Pro Forma Statement of Fnancial Position as at 31 December 2023from the Statement of Financial Position and additiona information provided below: INFORMATION The financial position of GattiLimited as at 31 December 2022is reflected the following statement: Statement of Financial Position as at 31 December 2022 R ASSETS Non-current assets1 400 000 Property, plant and equipment1200 000 Fixed deposits200 000 Current assets5 800 000 Inventories3 400 000 Accounts receivable2000 000 Cash and cash equivalents400 000 Total assets7 200 000 EQUITY AND LIABILITIES Equity4680 000 Ordinary share capital3 600 000 Retaned earnings1080 000 Non-current liabilities720 000 Long-term loan720 000 Current liabilities1800 000 Accounts payable1800 000 Total equity and liabilities7 200000 Additional information The followng must be taken into account for2023: Sales are forecast at R60000 000, wth a profit margin of 10% and a gross margin of 30%. Ffty percent (50%) of the sales isexpected to be for cash and the balance ison credit. The debtor collection period is expected to be 36.5 days. Al purchases of inventories are expected to be on credit and are estimated to total R48000 000. The creditor payment period is estimated to be 73 days. Equpment with a costprice ofR8000000 is expected to be purchased on 01 Juy 2023. Total depreciation is expected to be R800 000 for the year. The maturity dates of the fixed deposits are as folows: R80000 01 May2023 R120000 31 May 2025 The loan balance is expected to be reduced by R60000. The directorsare expected torecommend a final dividend of R4000000, payable during 2024. A bank balance of 1% of sales is desired. Ordinary share capital will remain unchanged. The amount of externalnon-currentfunding required must be calculated(balancing figure).
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