QUESTION $1$

$[25$ mar.

You are presented with the following statement of financial position for Case Ltd$,$ a manufacturer of electronic products.

Statement of financial position for Case Ltd as at $31$ December $2022$

$\backslash$table$[[$Funds Employed: $($Thousands$),],[$Share capital,$480,000],[$Distributable reserves,$520,000],[$Shareholders$\text{'}$ interest,$1000,000],[$Lonq$-$term loans,$300,000],[$Total$,1300,000],[$Represented by:$,800,000],[$Fixed assets,$500,000],[$Stock$,250,000],[$Debtors$,50,000],[$Cash$,1600,000],[$Total$,300,000],[$Current liabilities,$1300,000],[$Creditors$,],[$Total$,]]$

Additional information:

The firm's sales were R$5000000$ spread evenly over the year. The after$-$tax profit margin on sales was $6\%$ of which $50\%$ is retained within the business.

The business plans to increase its sales to R$8000000$ in the coming year.

Current sales are all on credit and as such an increase in sales is direct on credit sales.

REQUIRED

$($a$)$ Estimate the additional working capital required to support the increased sales

$(15)$

$($Hint: Use your knowledge on forecasting financial statements$)$