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%

Prepare a 5-year proforma balance sheet