finance for corporate action

QUESTION 2 [26 marks] Orico Lid, a Leading Tech company is planning to prepare forecasted financial statements for year 2023 based on year 2022 accounting data. Extract for the year ended 2022 Details 2022 (R) Total revenue 2 056 445 Cost of sales 1 659 375 Selling expenses 186 025 Depreciation expense 19 913 Interest expense 33 188 Outstanding shares (45 000 @ R 3 each) 135 000 Cash 26 550 Account receivable 292 050 Inventory 292 050 Plant & equipment 1 526 566 Accumulated depreciation 331 875 Average tax rate 28% Additional information Accounts payable, notes payable, long-term debt, common stock, additional paid- in-capital, and retained earnings represented 10%, 1.5%. 15%, 43.5%, 12% and 18% of total assets, respectively. 241 HPFM440-1-Jul-Dec2022-SA1-GC-V4-26072022 Year 2023, Forecast Information: Orico expects a 21% increase in total revenue, while cost of goods sold and selling and expenses are expected to remain at the same proportion of total revenue as in 2022. Both total plant and equipment and depreciation expense will increase by 18%. Similarly, long-term debt and interest expense is projected to increase by 15%, but the tax rate and number of shares outstanding will remain constant. Additionally accounts receivable, inventory, accounts payable, and notes payable are expected to increase by 15%, while common stock and paid-in-capital will increase by 18%. The dividend policy in 2023 will be based on a dividend payout ratio of 40%. Required. Using these projections, prepare the forecasted 2023 Income statement, BS and Statement of Cashflows for Orico Ltd. Each statement should be on a separate worksheet. Present your answer in: Normal view (13 marks) Formula view (13 marks)