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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,

1. Zalora Berhad is evaluating its financing requirements for 2024. 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 2023, Zalora had RM12 million in sales with net income of RM1.2 million. The firm anticipates that next years sales will reach RM15 million with net income of RM2 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 31st 2023
Items RM % of Sales
Current assets
Net fixed assets
Total assets
Liabilities & Owners Equity
Accounts payable
Long-term debt
Total liabilities
Common stock
Paid-in capital
Retained earnings
Total common equity
Total liability and owners equity
3,000,000
6,000,000
9,000,000
3,000,000
2,000,000
5,000,000
1,000,000
1,800,000
1,200,000
4,000,000
9,000,00025%
50%
25%
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 2024 by preparing Proforma Balance Sheet 2024.

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