Case study on financial planning and forecasting Irfan is the new financial manager of Cherat Cement, a Pakistani producer of cement. Cherat Cement's FY19 sales were Bs. 15.86 million, an increase of -10% in FY19 and the finance department is forecasting a sales increase 20% for 2020. Ivan thinks the company was operating at below capacity in 2019, but he is not sure about this. Assume that Checat was operating at below capacity in 2019 with respect to all assets, liabilities and owner's equity. a. What will the company's additional financial requirements be for the 2020? Note: In 2019 A) Dividend payout 40% B) Profit Margin is 12%. Use the AFN equation to answer this question. b. Forecast Income Statement for FY20 using % of Sales Method FY19 27,186 27,186 6,780 3,485 1,268 311 144 Income Statement Number of share 176,632 Rs 1000 (Except where indicate) FY18 Net Sales 14,388 Cost of sale 11,249 Gross profit 3,139 Distribution cost -337 Administration expenses -245 Other operating expenses -134 Other operating income 81 Finance cost -357 Profit before tax 2,147 Taxation -15 Profit after tax 2,132 176,632 FY 19 15,863 12,980 2,883 -396 -294 -109 30 1,542 33,966 Balance Sheet - Unconsolidated Rs 1000 (Except where indicate) FY18 Non-Current Assets 23,806 Property, plant and equipment 23,806 Current Assets 5,252 Stores, spares and loose tools 2,779 Stock in trade 754 Trade debts 188 loans and advances 84 Cash 47 Short-term Investment 1,400 Total Assets 29,058 Equity and liabilities Share capital 1,766 Reserve 9,407 Total Equity 11,174 Non-Current Liabilities 14,700 long-term financing 14,700 Current Liabilities 3,184 Trade and other payable 1,990 Accrued markup 230 short-term borrowings 964 Total Liabilities 17,884 Total Equity and Liabilities 29,058 107 -1,143 1,048 715 1,763 | 1,766 9,990 11,756 16,900 16,900 5,310 1,863 544 2,903 22,210 33,966