Use the information provided below to prepare the Proforma Statement of Financial Position of CVB Enterprises as at 31 December 2021.

INFORMATION The following information was extracted from the statement of financial position of CVB Enterprises on 31 December 2020.

R Cash in bank 160 000

Equity 2 200 000

Equipment 1 000 000

Inventories 640 000

Accounts payable 600 000

Non-current liabilities 0

Accounts receivable 1 000 000

Additional information

The sales for the year ended 31 December 2020 was R4 000 000.

The sales are expected to increase by R1 000 000 for the year ended 31 December 2021.

The after-tax return on sales is estimated at 10%. Seventy percent (70%) of the profit after tax is expected to be paid out as dividends during 2021.

An unfavourable bank balance of R100 000 is expected on 31 December 2021.

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

Except for the above, the percentage-of-sales method must be used to prepare the statement of financial position.