You have qualified as new Charted Financial Analyst (CFA) (SA) after completing your three year articles at Standard Charted Bank. One of your varsity friend who studied mechanical engineering has been running a very successful auto parts business which he inherited from his father. Since he inherit the business, he managed to open few branches in surrounding towns and one in the city close by. Since his big clients was staying in the city, he decided to make the city branch the head office. While transporting his files to the new head office, the courier van got hijacked and was never recovered. His financial records were also in stolen with van. Through quarterly back-up of records, he managed to recover some of the financial records backed-up a month ago before the incident happened. After notice that some records were missing from the back up, he took everything that he found and approached you for help. He supplied you with the following information from back-up drive.

MAD-FAM Auto Parts (Pty) Ltd Statement of Financial Position for the year ended 31 December 2020

2020

ASSETS

Non-current assets I

Total current assets II

Inventory III

Accounts receivable IV

Cash and cash equivalents R52 720

Total assets V

EQUITY AND LIABILITIES

Total equity 600,000

Share capital 600,000

Non-current liabilities

Long term debt VI

Current liabilities VII

Accounts payable 120,000

Bank overdraft VII

Current portion of long term debt 20,000

Total equity and liabilities IX

He also supplied the following additional financial statement analysis data:

• The current ratio was 1.60.
• The debt ratio was 60%.
• The average collection period was 40 days The gross profit margin was 25%.
• Inventory turnover was 6.0.
• There are 365 days in the year.
• Sales totalled R1 800 000
• The total asset turnover was 1.20.

YOU ARE REQUIRED TO:

Assist your varsity friend by completing his business statement of financial position at 31 December 2020 by using the information supplied to you. Show all your calculation clearly for each figure missing (I-IX).