t 31 Issued to production during May 700 units 2.2 Use the information provided below to prepare the Pro Forma Statement of Financial Position as at 31 December 2022. (10 marks) INFORMATION A financial manager at Ascot Ltd has gathered the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2022, the end of the financial year: Sales for 2022 is estimated to be R6 000 000. Sales for 2021 amounted to R4 000 000. The business maintains a cash balance of R160 000. Inventories, Accounts receivable and Accounts payable will be maintained at the same percentage of sales as for 2021. A new vehicle and equipment with a combined cost price of R2 000 000 will be purchased during 2022. An old vehicle with a cost price of R200 000 and accumulated depreciation of R150 000 is expected to be sold at carrying value on 31 December 2022. Total depreciation for 2022 is expected to amount to R800 000. 40 000 ordinary shares will be offered for sale during August 2022 at R4 per share. The business predicts a net profit margin of 10%. The directors are expected to propose a final dividend of R400 000, payable during 2023. An amount of R320 000 is expected to be paid to Sabre Bank, the non-current lender, during 2022. This amount includes interest on loan of R120 000. The amount of non-current external funding required must be calculated. Ascot Ltd Statement of Financial Position as at 31 December 2021 R ASSETS Non-current assets 3 200 000 Fixed/Tangible assets 3 200 000 Current assets 2 540 000 Inventories 1 600 000 Accounts receivable 800 000 Cash and cash equivalents 140 000 Total assets 5 740 000 EQUITY AND LIABILITIES Equity 2 000 000 Ordinary share capital 1 100 000 Retained earnings 900 000 Non-current liabilities 1 000 000 Long-term loan: Sabre Bank 1 000 000 Current liabilities 2 740 000 Accounts payable 2 740 000 Total equity and liabilities 5 740 000