1.1 REQUIRED Use the following financial data to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. INFORMATION Stylcor Ltd has provided the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. Sales for 2020 amounted to R3 800 000 and sales for 2021 are estimated to increase R4 000 000. Plant and equipment costing R300 000 will be purchased during 2021. Total depreciation for 2021 is expected to amount to R225 000. • The following must be projected using the percentage of sales: • Inventory • Accounts receivable Accounts payable The business will maintain a cash balance of R120 000 and any surplus cash will be invested in long term financial investments. • 50 000 shares at R5 each are expected to be issued in June 2021. The business predicts an 8% net profit margin. A final dividend of 20 cents per share is expected to be proposed in December 2021, payable in January 2022. The long term loan will be reduced by capital payments amounting to R50 000

1.1 REQUIRED Use the following financial data to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. INFORMATION Stylcor Ltd has provided the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. Sales for 2020 amounted to R3 800 000 and sales for 2021 are estimated to increase R4 000 000. Plant and equipment costing R300 000 will be purchased during 2021. Total depreciation for 2021 is expected to amount to R225 000. • The following must be projected using the percentage of sales: • Inventory • Accounts receivable Accounts payable The business will maintain a cash balance of R120 000 and any surplus cash will be invested in long term financial investments. • 50 000 shares at R5 each are expected to be issued in June 2021. The business predicts an 8% net profit margin. A final dividend of 20 cents per share is expected to be proposed in December 2021, payable in January 2022. The long term loan will be reduced by capital payments amounting to R50 000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 13PC

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