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Kenya Kwanza ltd wants to determine its liquidity position in 5 years from closure of business in year 2 0 2 3 . The financial

Kenya Kwanza ltd wants to determine its liquidity position in 5 years from closure of business in year 2023. The financial position as at December 2023 was: Balance sheet as at 31 December, 2023 Fixed assets: Ksh.000 Ksh.000 Freehold premises 1,680,000 Leasehold premises 1,200,000 Plant and equipment 1,120,000 Motor vehicles 600,0004,600,000 Current assets: Stocks 2,120,000 Debtors 880,000 Bank balance 240,0003,240,0007,840,000 Capital & liabilities: Creditors 1,440,000 Accrued expenses 1,120,000 Ordinary share capital 4,000,000 Reserves 380,00015% loan 900,0007,840,0007,840,000 Additional information: 1. The loan will mature before the end of the 5 year period and will be duly settled. 2. Sales for year 2023 amounted to ksh 16,000m and are expected to grow by 8% per year in each of the five years from 2024 to 2028.3. Dividend payout ratio of 40% is to be maintained. 4. Profit after tax is to be maintained at 14% of sales 5. Except for the ordinary share capital and reserves, all the remaining balance sheet items are to maintain their current (2023) percentage of sales Required: Determine the Total Uses of funds as at December 2028. Question 1Answer A. Ksh 4,579,532 B. Ksh 5,501,532 C. Ksh 3,969,572 D. Ksh 4,919,5127

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