Section A (compulsory Question) 40 Marks Somoza Ghana wants to prepare a 5 year profoma statement and you have been hired as a consultant for this job. Prepare a 5 year profoma statement with the details below. SOMOZA GHANA Sales for the current (year C) is $3,158.82. The firm expects its sales to grow at a rate of 20% per year, and it anticipates the following financial statement relations: Assumptions Current assets: Assumed to be 20% of end-of-year sales. Current liabilities: Assumed to be 9% of end-of-year sales. Net fixed assets: 55% of end-of-year sales Cost of goods sold 33% of end-of-year sales Depreciation: 10% of the average value of assets on the books during the year. Debt: The firm paid 20 of its debt in the 4th and 5th year, the 1* to 35d year debt remained the same. Interest rate on debt 11% Cash and marketable securities: This is the balance sheet plug. Average balances of cash and marketable securities are assumed to cam 13% interest Tax rate 35% 35% Dividend payout ratio Stock: Shareholders provide no additional direct financing: the company is assumed to issue no new stock or repurchase any stock. Year 0 SOMOZA GHANA Income Statement for the year ended 2019 Sales Cost of Goods Sold Interest payment on Debt Interest earned on cash and marketable securities Depreciation Profit before Tax Tax Profit after tax Dividend Retained earnings (790) (42.50) 118.01 (231.77) 2213 (885) 1,328 (465) 863.01 Year 0 1687 631.8 Balance Sheet for the year ended 2019 Cash on marketable securities Current Asset Fixed Asset At Cost Depreciation Net Fixed Asset Total Assets 2.565 (985.78) 1,579.41 3,898 Current Liabilities Debt Stock Accumulated Retained Earnings Total Liabilities and Equity 221.12 450 690 2537 3.898