1.2 REQUIRED Use the information provided below to prepare the Pro Forma Statement of Financial Position as at 31 December 2019. (13 marks) INFORMATION A financial manager at Rabada Inc has gathered the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2019, the end of the financial year: Sales for 2019 are estimated at R7 200 000. Sales for 2018 amounted to R4 800 000. The business maintains a cash balance of R192 000 Accounts receivable, inventories and accounts payable will be maintained at the same percentage of sales as for 2018 A vehicle and equipment with a combined cost price of R2 400 000 will be purchased during 2019. Total depreciation for 2019 is expected to amount to R960 000. 96 000 ordinary shares will be offered for sale during August 2019 at R3 per share. The business predicts a 10% net profit margin. The directors are expected to propose a final dividend of R480 000, payable during 2020. The long-term loan is expected to be reduced by R120 000. The amount of non-current external funding required must be calculated. 1 Rabada Inc Statement of Financial Position as at 31 December 2018 R ASSETS Non-current assets 3 840 000 Fixed/Tangible assets 3 840 000 Current assets 3 048 000 Inventories 1 920 000 Accounts receivable 960 000 Cash and cash equivalents 168 000 Total assets 6 888 000 EQUITY AND LIABILITIES Shareholders' equity Ordinary share capital Retained earnings Non-current liabilities Long-term loan Current liabilities Accounts payable Total equity and liabilities 2 400 000 1 320 000 1 080 000 1 200 000 1 200 000 3 288 000 3 288 000 6 888 000