Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 FELIZZA INFO Incorporated Balance Sheet for December 31, 2003 RM RM Cash 500 Account payable 1,000 Marketable securities 300 Accrued wages 1,000 Accounts receivable
2 FELIZZA INFO Incorporated Balance Sheet for December 31, 2003 RM RM Cash 500 Account payable 1,000 Marketable securities 300 Accrued wages 1,000 Accounts receivable 800 Notes payable 500 Inventories 400 Bond payable 300 Net Fixed Assets 4,000 Mortgage payable 1,700 Common stock 100 Paidin-capital 200 Retained Earnings 1,200 TOTAL ASSETS 6,000 TOTAL LIABILITIES & EQUITY 6,000 ii) Additional information: i) Sales in 2003 was RM10 million and it is projected to increase by 20%. The company is operating at full capacity. iii) The net profit margin for this company is 5% and dividend payout ratio is 50%. a) Prepare a proforma balance sheet for FELIZZA INFO Inc. Determine the additional funds needed using percent of sales method. (16 marks) b) Differentiate "spontaneous" and "discretionary" accounts. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started