PERSONAL Co. achieved a turnover of TZS 16 million in the year 2022 and expects turnover growth of 8.4% in year 2023. Cost of sales in 2022 was TZS 10.88 million and other expenses were TZS 1.44 million. The financial statements of PERSONAL Co. for the year 2022 is as follows.

Statement of financial position

	Amount (TZS Millions)
Assets Non-current Asset Current Assets Inventory Trade Receivables	22.0 2.4 2.2
Total Assets	26.6
Equity and Liabilities Equity Finance Ordinary shares Reserves Long term bank loan Trade payable Overdraft	5.0 7.5 10.0 1.9 2.2
Total equity and Liabilities	26.6

The long-term bank loan has a fixed annual interest rate of 8% per year. PERSONAL Co. pays taxation at an annual rate of 40% per year. The following accounting ratios have been forecasted for the next three years.

Gross profit margin 30%

Operating profit 20%

Dividend payout 50%

Inventory turnover 110 days

Trade receivable period 65 days

Trade payable period 75 days

Overdraft interest in year 2023 is forecasted to be TZS 140,000. No change is expected in the level of non-current assets and depreciation should be ignored.

Required

Prepare the following forecasted financial statement for PERSONAL Co.

A statement of Income for year 2023

A statement of Financial Position at the end of next 2023

Analyze and discuss the working capital financing policy of PERSONAL Co.