CHAPTER THREE Financial Forecasting and Planning 95 April 2007: Section B. Q2 a The balance sheet...

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CHAPTER THREE Financial Forecasting and Planning 95 April 2007: Section B. Q2 a The balance sheet for APPRENTICE CORP is as follows: APPRENTICE CORP Balance Sheet as at 30 June 2006 (RM'000) Cash 38,000 Accounts Payable 53,000 Marketable Securities 31,000 Notes payable 30,000 Accounts receivable 50,000 Taxes Payable 15,000 Inventories 77,500 Long term debt 15,500 Net plant and equipment 115,500 Preferred stock 70,000 Common Shares 100,000 28,500 Total Assets 312,000 312,000 Retained earnings Total Liabilities and Equities Currently, the company's sales are at RM500 million a year and the company has not reached its maximum capacity limit. During 2006, the company earned RM20 million as net profit and paid-out RM10 million in dividend also recorded the net profit margin of 5 percent. How much additional financing will be needed if sales expand to RM720 million during 2007? (Construct a pro forma balance sheet) CHAPTER THREE Financial Forecasting and Planning 95 April 2007: Section B. Q2 a The balance sheet for APPRENTICE CORP is as follows: APPRENTICE CORP Balance Sheet as at 30 June 2006 (RM'000) Cash 38,000 Accounts Payable 53,000 Marketable Securities 31,000 Notes payable 30,000 Accounts receivable 50,000 Taxes Payable 15,000 Inventories 77,500 Long term debt 15,500 Net plant and equipment 115,500 Preferred stock 70,000 Common Shares 100,000 28,500 Total Assets 312,000 312,000 Retained earnings Total Liabilities and Equities Currently, the company's sales are at RM500 million a year and the company has not reached its maximum capacity limit. During 2006, the company earned RM20 million as net profit and paid-out RM10 million in dividend also recorded the net profit margin of 5 percent. How much additional financing will be needed if sales expand to RM720 million during 2007? (Construct a pro forma balance sheet)