Q-2: You are working as finance intern at Dar Al Redda Enterprises. Your finance manager assigns you a task to do financial projection of the company for the next year. The following facts and figures are presented to you for your necessary workings. Dar Al Redda Enterprises Balance Sheet Assets 30-June-2020 (Amount in AED '000) Liabilities and Stockholders' Equity 15 Accounts Payables 60 90 Notes payable 30 Cash Accounts Receivables Inventory 60 8 Total Current Assets Accrued expenses Total Current Liabilities 165 98 Fixed assets 60 Common stock 75 52 Total assets Retained earnings Total Liabilities + S.E. Equity 225 225 The firm's current profit margin is 8% and 70% is paid out as dividends. Sales for 2020 were recorded at AED 300,000. Sales for 2018 have been projected to increase by 18%. Assume that Dar Al Redda Enterprises is currently operating below capacity and any future growth does not require any further investments in fixed assets. (a) Will Dar Al Redda Enterprises require new funds to finance this growth? Show the calculation in support of your answer. (3 Marks) (b) Prepare Pro Forma Balance Sheet for Dar Al Redda Enterprises for the year 2021 as per the format given below. If there are any new funds required, as per your calculation in part (a) above, this will be financed by common stocks. The retained earning amount has been given in the pro forma balance sheet