Use the following financial data to prepare the Pro Forma Statement of Financial Position as at 31 December 2021.(20 marks)

NFORMATION Jak Limited has provided the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. Sales for 2021 are estimated to be R3 000 000. A vehicle costing R400 000 will be purchased during 2021. Total depreciation for 2021 is expected to amount to R280 000. Inventories represent 30% of sales. Accounts receivable represent 25% of sales and the business maintains a cash balance of R50 000. There are 40 000 shares at R5 each and are expected to be issued during July 2021. In addition, the business predicts a 12% net profit margin.

A final dividend of 40 cents per share is expected to be declared, payable during 2022.

Accounts payable represent 15% of sales. The balance of the existing loan is expected to be reduced by one third by means of monthly repayments.

The amount of external funding (non-current liabilities) must be determined.

The Statement of Financial Position as at 31 December 2020 is as follows:

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020
Non - current Assets	1 000 000
Fixed/Tangible assets	1 000 000
Current Assets	900 000
Inventories	600 000
Accounts receivable	250 000
Cash and cash equivalents	50 000
Total assets	1 900 000
Equity	1 400 000
Ordinary share capital	1 200 000
Retained earnings	200 000
Non Current liabilities	300 000
Long term loan	300 000
Current liabilities	200 000
accounts payable	200 000
Total equity and liabilities	1 900 000

Study the information given below and prepare the production budget for January, February and March 2021