Required: Use the information provided to prepare the pro forma Statement of Financial Position as at 31 December 2018. INFORMATION In December 2017, Finch Limited was planning its financial needs for the coming year. As a first indication, the firms management required a pro forma Statement of Financial Position as at 31 December 2018 to gauge the financial needs at that time. The financial condition as at 31 December 2017 was reflected in this Statement of Financial Position: Statement of Financial Position as at 31 December 2017 R ASSETS Non-current assets 451 800 Property, plant and equipment Accumulated depreciation Other non-current assets 843 000 (434 600) 43 400 Current assets 2 982 400 Inventories 1 825 400 Accounts receivable 722 400 Cash and cash equivalents 434 600 Total assets 3 434 200 MANCOSA: BCOM FINANCIAL MANAGEMENT YEAR 1 PROGRAMME HANDBOOK: JANUARY 2018 INTAKE 54 54 EQUITY AND LIABILITIES R Equity 992 800 Ordinary share capital Retained income 624 000 368 800 Non-current liabilities 240 000 Mortgage bond 240 000 Current liabilities 2 201 400 Accounts payable Other current liabilities 612 300 1 589 100 Total equity and liabilities 3 434 200 Additional information Operations for the following year were projected using the following working assumptions to plan the financial results: ? Sales were forecast at R20 900 000. ? Capital expenditures were scheduled at R42 000 for a delivery van and R72 000 for warehouse improvements. ? Depreciation is expected to be R62 800 for the year. ? Inventories, Accounts receivable and Accounts payable are estimated to be 10%, 4% and 6% of sales respectively. ? Cash balances are desired to be no less than R300 000. ? Net profit after tax is expected at a level of 0.19% of sales. ? Dividends for the year were estimated at R25 000. ? A mortgage loan repayment of R20 000 is expected to be made. ? Other current liabilities will be allowed to fluctuate with seasonal needs.