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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![QUESTION 1
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 to
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F698fb5ae-aff1-4f89-99ae-6e521f2fefc1%2F6b0dd842-2f36-4b1d-a23d-69fc4b49fcb7%2Fl5ndf6i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
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 to
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
![STYLCOR LTD
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020
R
ASSETS
Non-current assets
2 100 000
Fixed/Tangible assets
2 100 000
1 596 000
Current assets
Inventories
532 000
Accounts receivable
760 000
Cash and cash equivalents
304 000
Total assets
3 696 000
EQUITY AND LIABILITIES
Equity
2 336 000
Ordinary share capital (500 000 shares)
1 500 000
Retained earnings
836 000
410 000
Non-current liabilities
410 000
Long-term loan
950 000
Current liabilities
Accounts payable
950 000
Total equity and liabilities
3 696 000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F698fb5ae-aff1-4f89-99ae-6e521f2fefc1%2F6b0dd842-2f36-4b1d-a23d-69fc4b49fcb7%2Fauhyt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:STYLCOR LTD
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020
R
ASSETS
Non-current assets
2 100 000
Fixed/Tangible assets
2 100 000
1 596 000
Current assets
Inventories
532 000
Accounts receivable
760 000
Cash and cash equivalents
304 000
Total assets
3 696 000
EQUITY AND LIABILITIES
Equity
2 336 000
Ordinary share capital (500 000 shares)
1 500 000
Retained earnings
836 000
410 000
Non-current liabilities
410 000
Long-term loan
950 000
Current liabilities
Accounts payable
950 000
Total equity and liabilities
3 696 000
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