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

$600,000$

$4,600,000$

Current assets:

Stocks

$2,120,000$

Debtors

$880,000$

Bank balance

$240,000$

$3,240,000$

$7,840,000$

Capital & liabilities:

Creditors

$1,440,000$

Accrued expenses

$1,120,000$

Ordinary share capital

$4,000,000$

Reserves

$380,000$

$15\%$ loan

$900,000$

$7,840,000$

$7,840,000$

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 $16,000$m 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 $1$Answer

A$.$

Ksh $4,579,532$

B$.$

Ksh $5,501,532$

C$.$

Ksh $3,969,572$

D$.$

Ksh $4,919,512$