Question
Balance Sheet 2019/12/31 Current Assets Cash 1,243,926 Inventory 2,317,097 Accounts Receivables 244,327 Current Assets 3,805,350 Fixed Assets 15,713,298 Total Assets 19,518,648 Current Liabilities Accounts payable
| |
Statement of Income | 2019/12/31 | ||
Sales (on Credit) | 9,882,996 | ||
- Cost of goods sold | 6,371,919 | ||
Total Income | 3,511,077 | ||
+ Other Revenues | - | ||
Total Revenues | 3,511,077 | ||
-Admin and Marketing Expenses | 1,123,998 | ||
-Depreciation | 714,153 | ||
Operating Profit (EBIT) | 1,672,926 | ||
- Interest Expenses | 181,352 | ||
Net Income Before Zakat | 1,491,574 | ||
| 50,946 | ||
Net Income | 1,440,628 | ||
Additional Information:
Next years sales are projected to increase by 5%.
The following items will change in proportional to sales.
- Cost of goods sold
- Admin and Marketing Expenses
- All assets
- Accounts payable
The following items will not change in proportional to sales.
- Long term Debt (liabilities) and Shareholders equity are not.
Assume a dividend payout ratio of 50%. tax rate of 4%.
Compute the following:
- EXTERNAL FUND REQUIREMENT
- Create the pro-forma statement for the year 2020.
- What is the external nancing needed for the year 2020?
- Reconcile the pro-forma statements ?
- Calculate the Internal and external growth rate for the year 2019.
- CASH & LIQUIDITY MANAGEMENT for the year 2019
- Calculate the operating cycle for the year 2019.
- Calculate the cash cycle for the year 2019.
- For how many days does the company need to arrange for cash funding for the year 2019.
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