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QUESTION $1$

ASSETS

Non$-$current assets R$451800$

Property, plant and equipment R$843000$

Accumulated depreciation $($R$434600)$

Other non$-$current assets R$43400$

Current assets R$2982400$

Inventories R$1825400$

Accounts receivable R$722400$

Cash and cash equivalents R$434600$

Total assets R$3434200$

EQUITY AND LIABILITIES

Equity R$992800$

Ordinary share capital R$624000$

Retained income R$368800$

Non$-$current liabilities R$240000$

Mortgage bond R$240000$

Current liabilities R$2201400$

Accounts payable R$612300$

Other current liabilities R$1589100$

Total equity and liabilities R$343420$

ADDITIONAL INFORMATION:

Operations for the following year were projected using the following working assumptions to plan the financial results:

Sales were forecast at R$20900000.$

Capital expenditures were scheduled at R$42000$ for a delivery van and R$72000$ for warehouse improvements.

Depreciation is expected to be R$62800$ for the year.

Inventories, Accounts receivable and Accounts payable are estimated to be $10\%,4\%$ and $6\%$ of sales respectively.

Cash balances are desired to be no less than R$300000.$

Net profit after tax is expected at a level of $0\mathrm{.}19\%$ of sales.

Dividends for the year were estimated at R$25000.$

A mortgage loan repayment of R$20000$ is expected to be made.

Other current liabilities will be allowed to fluctuate with seasonal needs.

QUESTION ONE $(25$ Marks$)$

$1\mathrm{.}1$ Use the information provided to Prepare the pro forma Statement of Financial Position as at $31$ December $2024.$

$1\mathrm{.}2$ Discuss the purpose of projected financial statements in business planning and decision$-$making, highlighting their significance for managerial decision$-$making, investor relations, and strategic

planning.

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