The following are the financial statements of Chromium Ltd for the period ended 31 December 2014.

Statement of comprehensive income for Chromium Ltd for period ended 31 December 2014

Item	Amount (R)
Sales revenue	300 000
Cost of sales	195 000
Gross profit	105 000
Selling expenses	40 000
General and administration expenses	11 000
Depreciation	10 000
Total operating expenses	61 000
Profit before interest and taxes	44 000
Interest paid	12 000
Profit before taxes	32 000
Taxes (40%)	12 800
Profit after taxes	19 200

Statement of the financial position for Chromium Ltd as at 31 December 2014

Item	Amount (R)
Assets
Cash	1500
Accounts receivables	60 000
Inventory	95 000
Total current assets	156 500
Net non-current assets	150 000
Total assets	306 500
Liabilities and owners equity
Accounts payable	45 500
Notes payable	55 000
Short-term bank loans	5000
Total current liabilities	105 500
Long-term debt	55 000
Ordinary share capital	71 000
Retained earnings	75 000
Total shareholders equity	146 000
Total liabilities and shareholders equity	306 500

The following additional information relates to the firm's financial projections for the year 2015. Please read the additional information carefully. The firm's sales target for 2015 is R330 000 Accounts receivable represent 20% of sales A minimum cash balance of R1 650 will be maintained Inventory represents 32% of sales Fixed asset outlays in 2015 will be R20 000 and the total depreciation expense for the year will be R15 000 Accounts payable represent 15% of sales No long-term debt will be retired in 2015 No ordinary shares will be repurchased in 2015 The firm will pay dividends equal to 50% of its earnings after taxes

REQUIRED You are a financial analyst representing a major credit company and have been requested to prepare a pro forma statement of comprehensive income and a statement of the financial position for the period ended 31 December 2015. Using the percent-of-sales method, prepare the pro forma statements for this company and discuss the resulting external financing required. Use the space provided below to conduct your preliminary calculations and fill in the templates provided below

Projected statement of comprehensive income for Chromium Ltd for the period ended 31 December 2015

ITEM	ITEM	Amount (R)
Sales
Cost of goods sold
Gross profit
Less Operating expenses
	Selling expenses
	General and administrative expenses
	Depreciation
Profit before interest and taxes
Interest paid
Profit before taxes
Taxes (40%)
Profit after taxes
Dividends paid
Accumulated profits for the year/retained earnings

Projected statement of financial position for Chromium Ltd as at 31 December 2015

ITEM	Amount (R)
ASSETS
Current assets
Cash
Accounts receivable
Inventory
Total current assets
Non-current assets
Net plant and equipment
Total non-current assets
Total assets
LIABILITIES AND OWNERS EQUITY
Current liabilities
Accounts payable
Notes payable
Short-term bank loans
Total current liabilities
Ordinary share capital
Retained earnings
Total shareholders equity
Long-term debt
External financing required (plug figure)
Total liabilities and shareholders equity