FORMATIVE ASSESSMENT $2[93$ MARKS$]$

Answer ALL questions.

Question One and Two are based on the information provided below for Mia Limited:

INFORMATION:

In December $2023,$ Mia Limited was planning its financial needs for the coming year. As a first indication, the

firms management required a pro forma Statement of Financial Position as at $31$ December $2024$ to gauge the

financial needs at that time. The financial condition as at $31$ December $2023$ was reflected in this Statement of

Financial Position:

Statement of Financial Position as at $31$ December $2023$

R

ASSETS

Non$-$current assets $451800$

Property, plant and equipment

Accumulated depreciation

Other non$-$current assets

$843000$

$(434600)$

$43400$

Current assets $2982400$

Inventories $1825400$

Accounts receivable $722400$

Cash and cash equivalents $434600$

Total assets $3434200$

EQUITY AND LIABILITIES

Equity $992800$

Ordinary share capital

Retained income

$624000$

$368800$

Non$-$current liabilities $240000$

Mortgage bond $240000$

Current liabilities $2201400$

Accounts payable

Other current liabilities

$612300$

$1589100$

Total equity and liabilities $3434200$

ADDITIONAL INFORMATION:

QUESTION ONE $(25$ Marks$)$

REQUIRED

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

$2024.(20)$

$1\mathrm{.}2$ 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.