SutraChem expands its manufacturing capacity, funded by the issuance of new initial public offering (IPO). The exercise increases its number of shares outstanding to 30 million units. The fund is expected to be sufficient for the next FIVE (5) years, hence there will be no new shares issuance during that period.

The company sees the expansion exercise as a huge turnaround for the company where the sales for 2020 is RM65 million and is expected to grow at 5% annually. The new machines are to be depreciated at 14% annually. The company spends RM240,000 annually on building rentals. Company's cash kept in current account will give return of 4% annually, while debt will be charged 5%. To avoid future cash uncertainties and emergency, the company sets a minimum cash requirement of RM3 million. The company expects to pay 34% tax rate and pays dividend of 40% of the net profit.

As a Financial Manager of the company, you have compiled the percentage of sales parameters which are derived from the company's historical financial performance as follows:

Item	Percentage of Sales
Cost of goods sold	40.0%
Selling, general and administrative expenses	10.0%
Marketing and promotion expenses	1.0%
Utilities expenses	1.0%
Depreciation expenses	14.0%
Interest earned	4.0%
Interest expenses	5.0%
Accounts receivable, net	15.0%
Merchandise inventory	10.0%
Other current assets	10.0%
Long-term investments	12.0%
Plant and equipment, net	25.0%
Current liabilities	40.0%
Other contribution to capital	5.0%

PPrepare 5 years income statement