Question 06 APEX Co achieved a turnover of TZS 16 million in the year that has just ended and expects a turnover growth of 8.4% in the next year. Cost of sales in the year has just ended was TZS 10.88 Million and other expenses were TZS 1.44 Million. The financial statement of APEX CO. for the year that has just ended is as follows: Statement of financial position AMOUNT (TZS Millions) 22.0 2.4 2.2 26.6 Assets Non-Current Assets Current Assets Inventory Trade Receivables Total Assets Equity and Liabilities Equity Finance Ordinary shares Reserves Long-term loan Trade payable Overdraft Total Equity and Liabilities 5.0 7.5 10.0 1.9 2.2 26.6 The long-term bank loan has a fixed annual interest of 8% per year. APEX CO. pays taxation at annual rate of 40% per year. The following accounting ratios have been forecasted for the next three years: Gross profit margin 30% Operating profit margin 20% Dividend pay-out 50% Inventory turnover 110 days Trade receivables period 65 days Trade payables period 75 days 110 Overdraft interest in the next year is expected to be TZS 140,000. No change is expected in the in the level of non-current assets and depreciation should be ignored. REQUIRED (a) Prepare the following forecasted statements for APEX CO.: (6) A statement of income for the next year (ii) A statement of financial position at the end of the year (b) Analyse and discuss the working capital financial policy of APEX CO