Use the information provided below to prepare the Pro Forma Statement of Financial Position as at 31 December 2022

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

Additional information:

1. All purchases and sales of inventories are on credit.

2. Inventories amounted to R600 000 on 31 December 2020.

3. The ordinary shares were all issued at R4 each.

4. Credit terms to debtors are 30 days.

FINCH LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 2021 \begin{tabular}{|lr|} \hline Sales & 2400000 \\ \hline Cost of sales & 1500000 \\ \hline Operating profit & 540000 \\ \hline Interest expense & 60000 \\ \hline Profit before tax & 480000 \\ \hline Profit after tax & 336000 \\ \hline FINCH LIMITED & \\ \hline STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 & 2850000 \\ \hline Assets & 915000 \\ \hline Non-current assets & 360000 \\ \hline Inventories & 890000 \\ \hline Accounts receivable & 4815000 \\ \hline Cash and cash equivalents & 8 \\ \hline Total assets & 8000000 \\ \hline Equity and liabilities & \\ \hline Ordinary share capital & 8 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Relained earnings & 705000 \\ \hline Non-current liabilities & 600000 \\ \hline Current liabilities (Accoounts payable only) & 510000 \\ \hline Total equity and liabilities & 4815000 \\ \hline \end{tabular} FINCH LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 2021 \begin{tabular}{|lr|} \hline Sales & 2400000 \\ \hline Cost of sales & 1500000 \\ \hline Operating profit & 540000 \\ \hline Interest expense & 60000 \\ \hline Profit before tax & 480000 \\ \hline Profit after tax & 336000 \\ \hline FINCH LIMITED & \\ \hline STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 & 2850000 \\ \hline Assets & 915000 \\ \hline Non-current assets & 360000 \\ \hline Inventories & 890000 \\ \hline Accounts receivable & 4815000 \\ \hline Cash and cash equivalents & 8 \\ \hline Total assets & 8000000 \\ \hline Equity and liabilities & \\ \hline Ordinary share capital & 8 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Relained earnings & 705000 \\ \hline Non-current liabilities & 600000 \\ \hline Current liabilities (Accoounts payable only) & 510000 \\ \hline Total equity and liabilities & 4815000 \\ \hline \end{tabular}