se price. 1.3 Use the following information to prepare the Pro Forma Statement of Financial Position of Lilac Limited as at 31 December 2022. (11 marks) INFORMATION The following information was supplied by Lilac Limited to assist in determining its expected financial position as at 31 December 2022: Sales for 2021 amounted to R2 400 000. Sixty percent (60%) of the sales was for cash and the balance was on credit. The cash sales for 2022 are expected to increase by 20% whilst the credit sales are expected to increase by 30%. The following must be calculated using the percentage-of-sales method: Accounts receivable Accounts payables The company maintains a fixed inventory level of R1 248 000 at the end of each month. Lilac Limited expects to show a net decrease in cash of R120 000 during 2022. Equipment with a cost price of R480 000 and accumulated depreciation of R360 000 is expected to be sold for R130 000 at the end of 2022. Additional property that cost R2 400 000 will be purchased during 2022. Total depreciation for 2022 is estimated at R480 000. 120 000 ordinary shares at R3 each are expected to be sold during January 2022. The business predicts a net profit margin of 20%. Dividends of R300 000 are expected to be recommended by the directors during December 2022. The dividends will be paid during 2023. R600 000 will be paid to Wes Bank during 2022. This includes R360 000 for interest on loan. The amount of external non-current funding required must be calculated (balancing figure). Lilac limited Statement of Financial Position as at 31 December 2021 ASSETS R Non-current assets Fixed/Tangible assets 3 600 000 3 600 000 Current assets Inventories 2 304 000 1 248 000 Accounts receivable Cash and cash equivalents 960 000 96 000 5 904 000 Total assets EQUITY AND LIABILITIES Shareholders' equity 2 808 000 Ordinary share capital Retained earnings 1 980 000 828 000 Non-current liabilities 2 400 000 Long-term loan (Wes Bank) 2 400 000 Current liabilities Accounts payable Total equity and liabilities ESTION 2 696 000 696 000 5 904 000