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compute the self- supporting growth rate of XYZ company limited Statement of Profit or lines for the Year Ending 11 October, 201 Cl, 001) Notes
compute the self- supporting growth rate of XYZ company limited
Statement of Profit or lines for the Year Ending 11 October, 201 Cl, "001) Notes A CH('000 2500 0.250 25 15 Sales Cost of Sale Gruss Profit Expenses Administrative Sales and Marketing General Barning before Interest and Tax Inter Burninys before tax Tax Barning after tas Dividends Retained lamines (170) 1.OXO D - - 1 00 GO 1 510 185 Statement of inancial Position As October 2021 Non Current Assets Toperty Plant and Machinery Vans Notes 11 11 1 Gll'000 10.000 35.000 75.000 100.000 Current Asset Inventory Accounts Receivables Cash and Cash Equivalent === H 11 15.000 35.000 70.000 120.000 220.000 Total Assets EQUITY LIABILITIES Openmg Equity Rated Earnings 173.000 25,485 155.485 LONG-TERM LIABILITIES Loan 2.000 CURRENT LIABILITIES Accounts Payable TOTAL LIABILITIES Equity + Total Liabilities 19.515 61.515 220.000 Notes: A XYZ Company Limited is targeting a sules growth of 25% to meet growing demand and increase its market share. B. Cost of sales ratio remains unchanged C. Sales and marketing expenditure is expected to increase in proportion with sales increase D. Profit margin remains unchanged. E Interest on loan is 20%. The loan has a matunty period of ten (10) years F. Corporate tax rate is 25% G Dividend pay-out ratio remains unchanged H. Assetto sales ratios remain unchanged. I Spontaneous liabilities ratio remain unchanged. J. XYZ Company Limited is currently operating at full capacity Requirements: 1. Compute the self-supporting growth rate of XYZ Company Limited 2. Using the relevant sales target are there any additional funding needs for XYZ Company Limited? Use both formula approach and the pro-forma financial statement approach 3. If there is the need for additional funds discuss some of the sources of funds and their implications for the companyStep by Step Solution
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