QUESTION ONE ABC limited is in the process of planning for the financial requirements for the next 2 years. The following are the financial statements for the year ended 30 September 2019. ABC LTD Income Statement (in millions of sh 000) For the year ended 30 September 2019 Sales 1000 Total expenses 800 Taxable income 200 Taxes (34%) 68 Net income 132 Dividend (33.33%) 14 Earnings retained 88 ABC LTD Statement of financial position As at 30 September 2019 CURRENT ASSETS Cash 160 160 Accounts recievable 440 440 Inventory 600 600 Total Current Assets. 1200 NET FIXED ASSETS 1800 TOTAL ASSETS 3000 Financed by CURRENT LIABILITIES Accounts payable 300 300 Notes payable 100 100 Total Current Liabilities. 400 NON-CURRENT LIABILITIES 800 Ordinary Share capital 800 Retained earnings 1000 Total Capital and liabilities 3000 Additional Information 1. Sales are expected to increase by 25%. 2. Assumptions concerning the income statement: 3. Expenses are a constant fraction of sales. 4. The tax rate is not expected to change. 5. Dividend payout ratio will remain constant Required i. Determine the external financial requirement for the next two years. (7marks) Prepare a proforma statement of financial position as at 30 September 2021. (5 marks) (Total 13 marks)