Sterling Limited Statement of Financial Position as at 30 April 2018 R ASSETS Non-current assets 3 000 000 Fixed assets (Property and vehicles) 3 000 000 Current assets 2 660 000 Inventories Trade and other receivables Cash and cash equivalents 1 800 000 720 000 140 000 Total assets 5 660 000 EQUITY AND LIABILITIES Shareholders equity 1 890 000 Ordinary share capital Retained earnings 1 080 000 810 000 Non-current liabilities 900 000 Long-term loan 900 000 Current liabilities 2 870 000 Trade and other payables Notes payable 480 000 2 390 000 Total equity and liabilities 5 660 000 ds 4 Information: Sales for the year is estimated to be R6 000 000. The business maintains a cash balance of R150 000. Trade and other receivables represent 20% of sales. Inventory represents 30% of sales. A motor vehicle costing R900 000 will be purchased in May 2018. Total depreciation up until yearend 30 April 2019 is expected to be R450 000. Trade and other payables represent 5% of sales. There will be no change in notes payable and share capital. Dividends of R270 000 will be paid on 28 April 2019. The business predicts a 10% profit margin. R120 000 of the long-term loan will be repaid before year-end, April 2019. The amount of external funding required must be calculated.

REQUIRED: Use the percentage-of-sales method to prepare the pro forma statement of financial position (balance sheet) of Sterling Limited as at 30 April 2019