Question 2 Pro Forma Balance Sheet of Summerfields S/B for the year ended 2021 (RM 1000) WW Cash Marketable securities Accounts receivable Inventories Net Fixed Asset 600.00 V 750.00 1,125.00 w 750.00 V 7,275.00 Account Payable Accrued Wages Notes Payable Mortgage Payable Common Stock Retained Earnings 1,800.00 1,800.00 700.00 2,200.00 1,180.00 2,820.00 WWWWW TOTAL ASSETS 10,500.00 TOTAL CLAIMS 10,500.00 RE1 = 1,200 + (18,000 x 0.12 x (1-0.4)) = 2820 AFN = 10,500 - 9,820 = 680 Absorbed by common stock = 500+680 = 1,180 (20V * 0.5 = 10 marks) Question 2 Pro Forma Balance Sheet of Summerfields S/B for the year ended 2021 (RM 1000) WW Cash Marketable securities Accounts receivable Inventories Net Fixed Asset 600.00 V 750.00 1,125.00 w 750.00 V 7,275.00 Account Payable Accrued Wages Notes Payable Mortgage Payable Common Stock Retained Earnings 1,800.00 1,800.00 700.00 2,200.00 1,180.00 2,820.00 WWWWW TOTAL ASSETS 10,500.00 TOTAL CLAIMS 10,500.00 RE1 = 1,200 + (18,000 x 0.12 x (1-0.4)) = 2820 AFN = 10,500 - 9,820 = 680 Absorbed by common stock = 500+680 = 1,180 (20V * 0.5 = 10 marks)