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1 . Zalora Berhad is evaluating its financing requirements for 2 0 2 4 . The firm has been in business for only one year,
Zalora Berhad is evaluating its financing requirements for The firm has been in business for only one year, but its CFO predicts that the firms operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. In Zalora had RM million in sales with net income of RM million. The firm anticipates that next years sales will reach RM million with net income of RM million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investments.
The firms balance sheet for the year just ended is as follows:
Zalora Berhad
Balance Sheet as at Dec st
Items RM of Sales
Current assets
Net fixed assets
Total assets
Liabilities & Owners Equity
Accounts payable
Longterm debt
Total liabilities
Common stock
Paidin capital
Retained earnings
Total common equity
Total liability and owners equity
NA
NA
NA
Notes: NA not applicable, These account balances do not vary with sales and are assumed to remain constant for purposes of forecasting next years financing requirements.
Required:
Estimate Zaloras total financing requirements total assests and its net funding requirements discretionary financing neede for by preparing Proforma Balance Sheet
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