Angostura Holdings Limited Income Statements For the years ended December 31, 2018 & 2019 Sales Cost of Sales Gross Profit Selling & Marketing Expenses Administrative Expenses Expected credit loss on trade receivables Interest Income Other Income (Expenses) Earnings before Interest & Taxes Interest Expense Taxable income Taxation Net Income 2018 ('000) 783,692 (392209) 391,483 (145,010) (69,935) (2,487) 5,201 398 179,650 (312) 179,338 (47.685) 131,653 2019 ('000) 847,200 (429.723) 417.477 (140,205) (88.713) (4,304) 8,648 3,427 196,330 (555) 195,775 (59.935) 135,840 Dividends Pald 43,318 49,507 Angostura Holdings Limited Statement of Financial Position As at December 31, 2018 & 2019 2018 ('000) 2019 ('000) 2018 ('000) 2019 ('000s) ASSETS Current Assets Inventories Accounts Receivables Other Current Assets Cash & Equivalents LIABILITIES & EQUITY Current Liabilities Accounts Payables Other Current Liabilities 245,491 145,742 318,475 119,075 828,783 253,769 185,870 411,461 103, 151 954,251 80,929 4,098 85,027 107,299 16.572 123,871 Non-current Liabilites 75,705 77,337 Non Current Assets, Net 387 117 388,458 Total Liabilities 160,732 201,208 Equity Share Capital & Other Reserves Retained Eamings Total Equity TOTAL LIAB. & EQUITY 219,354 835,814 1055,168 219,354 922,147 1141,501 TOTAL ASSETS 1215.900 1342 709 1215.900 1342.709 ADDITIONAL NOTES TO FINANCIAL STATEMENTS: Depreciation Expense for 2019 = $26,144 ('000) Common Stock = Share Capital & Other Reserves Depreciation expense for 2018: $21,499 ('000) (b) Assume that Angostura is currently operating at full capacity. All costs/expenses/income and networking capital vary directly with sales/revenue. Interest Expenses will remain unchanged. The tax rate and the dividend payout rate will remain constant (i.e. the same as 2019). How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increase by 20%? (20 Marks) NOTE: Tax Rate must be calculated (2 decimal places) Dividend payout rate must be calculated (2 decimal places) Pro forma statements are to be prepared (Round all figures to the nearest dollar) Angostura Holdings Limited Income Statements For the years ended December 31, 2018 & 2019 Sales Cost of Sales Gross Profit Selling & Marketing Expenses Administrative Expenses Expected credit loss on trade receivables Interest Income Other Income (Expenses) Earnings before Interest & Taxes Interest Expense Taxable income Taxation Net Income 2018 ('000) 783,692 (392209) 391,483 (145,010) (69,935) (2,487) 5,201 398 179,650 (312) 179,338 (47.685) 131,653 2019 ('000) 847,200 (429.723) 417.477 (140,205) (88.713) (4,304) 8,648 3,427 196,330 (555) 195,775 (59.935) 135,840 Dividends Pald 43,318 49,507 Angostura Holdings Limited Statement of Financial Position As at December 31, 2018 & 2019 2018 ('000) 2019 ('000) 2018 ('000) 2019 ('000s) ASSETS Current Assets Inventories Accounts Receivables Other Current Assets Cash & Equivalents LIABILITIES & EQUITY Current Liabilities Accounts Payables Other Current Liabilities 245,491 145,742 318,475 119,075 828,783 253,769 185,870 411,461 103, 151 954,251 80,929 4,098 85,027 107,299 16.572 123,871 Non-current Liabilites 75,705 77,337 Non Current Assets, Net 387 117 388,458 Total Liabilities 160,732 201,208 Equity Share Capital & Other Reserves Retained Eamings Total Equity TOTAL LIAB. & EQUITY 219,354 835,814 1055,168 219,354 922,147 1141,501 TOTAL ASSETS 1215.900 1342 709 1215.900 1342.709 ADDITIONAL NOTES TO FINANCIAL STATEMENTS: Depreciation Expense for 2019 = $26,144 ('000) Common Stock = Share Capital & Other Reserves Depreciation expense for 2018: $21,499 ('000) (b) Assume that Angostura is currently operating at full capacity. All costs/expenses/income and networking capital vary directly with sales/revenue. Interest Expenses will remain unchanged. The tax rate and the dividend payout rate will remain constant (i.e. the same as 2019). How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increase by 20%? (20 Marks) NOTE: Tax Rate must be calculated (2 decimal places) Dividend payout rate must be calculated (2 decimal places) Pro forma statements are to be prepared (Round all figures to the nearest dollar)