(a) Prepare free cash flow statement that shows Operating Cash Flows (OCF), Net Fixed Asset Investment (NFAI) and Net Current Asset Investment (NCAI) (7 marks)

(b) Sekinchan Metal Berhad has assembled 2019 income statement to be used in preparing 2020 proforma income statement.

Information related to financial projections for the year 2020 as follows:

- Projected sales are RM550,000.

- Cost of Goods sold in 2019, includes RM85,000 in fixed cosf.

- Operating expense in 2019, includes RM35,000 in fixed cost.

- Interest expense in 2019, includes RM13,000 in fixed cost.

- Tax rate will remain at 25%.

i) Prepare a pro forma income statement based on percent-of-sales for 2020. (6 marks)

ii) Prepare a proforma income statement based on fixed-variable cost. (7 marks)

Kunci Kira-Kiral Balance Sheet (RM"000) Penyata Untung Rugil Income Statement (RM000) Untuk Tarikh Tamat / For The Period Ended 12/3/2019 Jualan / Sales 10,000 Kos Barang Dijual / Cost of Goods Sold 6,000 Margin Kasar / Gross Margin 4,000 Aset / Assets Aset Semasa / Current Assets 31/12/2018 31/12/2019 Tunai / Cash 1,000 1,800 Akaun Belum Terimal Accounts Receivable 3,000 2,900 Inventori / Inventory 2,000 2,800 Jumlah kecil Sub-total 6,000 7,500 Aset Jangka Panjang / Long-Term Asset Aset Tetap Kasar / Gross Fix Asset 4,000 6,000 Susut Nilai Terkumpul / Accumulated Depreciation 1,000 1,500 Nilai Bersih Aset Tetap / Net Fix Asset 3,000 4,500 JUMLAH ASET / TOTAL ASSETS 9,000 12,000) Perbelanjaan Operasi / Operating Expenses Susut Nilai / Depreciation Pendapatan Sebelum Faedah dan Cukai/ Earning Before Interest and Tax 1 Faedah / Interest Pendapatan Sebelumn Cukai / Protax Income Cukai / Tax Pendapatan Bersih / Net Income 1.600 500 1,900 400 1,500 500 1,000 Liabiliti dan Ekuiti Liabilities and Equities Akaun Belum Bayar / Accounts Payable 500 Akrual / Accruals Jumlah kecilSub-Total Hutang Jangka Panjang / Long-Term Debt ,000 Ekuiti / Equity 2,000 Jumlah kecilSub-Total 7,000 2,100 400 2,500 6,200 3,300 9,500 JUMLAH LIABILITI & EKUITI/ TOTAL LIABILITIES AND EQUITY 9,000 12,000 31 Disember/December 2019 Jualan / Sales Kos Barangan Jualan Coast of Goods Sold Pendapatan Kasar / Gross Profit Perbelanjaan Operasi / Operating Expenses Pendapatan Operasi / Earnings Before Interest and Tax Faedah Interest Pendapatan Sebelum Cukai / Profit Before Tax Cukai / Tax (25%) Pendapatan Selepas Cukai / Profit After Taxes RM 400,000 192,500 207,500 65,000 142,500 19,000 123,500 30,875 92.625