Answer all questions in section and any other 2 questions from section B Section Accompulsory Question 10 Marks Somoza Ghana wants to prepare a 5 year profoma statement and you have been hired as a consultant for this job. Prepare a 5 year profoma statement with the details below. SOMOZA GHANA Sales for the current (year 0) is $3.158.82. The firm expects its sales to grow at a rate of 20% per year, and it anticipates the following financial statement relations: Assumptions Current assets Assumed to be 20% of end-of-year sales. Current liabilities: Assumed to be 9% of end-of-year sales Net fixed assets 55% of end-of-year sales Cost of goods sold 33% of end-of-year sales Depreciation: 10% of the average value of assets on the books during the year Debt: The firm paid 20 of its debt in the 4 and 5 year, the 1' to 3 year debt remained the same Interest rate on debt 11% Cash and marketable securities: This is the balance sheet plug. Average balances of cash and marketable securities are assumed to aur 13% interest Tax rate 35% 35% Dividend payout ratio Stock: Shareholders provide no additional direct financing: the company is assumed to issue no new stock or repurchase any stock. Page 2 of SOMOZA GHANA Year o 790) (42.50) Income Statement for the year ended 2019 Sales Cost of Goods Sold Interest payment on Debt Interest earned on cash and marketable securities Depreciation Profit before Tax Tax 118.01 (231.77) 2213 (885) 1.328 Profit after tax Dividend Retained earnings (465) 863 01 Balance Sheet for the year ended 2019 Cash on marketable securities Current Asset Year 1687 631.8 Fixed Asset At Cost 2.565 (985.78) Depreciation Net Fixed Asset Total Assets 1.579.41 3.898 Current Liabilities Debt 221.12 450 690 Stock Accumulated Retained Earnings Total Liabilities and Equity 2537 3.898