Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is the balance sheet of Bestari Inc. as at 31 December, 2021. Current Assets Net Fixed Assets Total Assets RM REQUIRED: 2,750,000.00 3,200,000.00
The following is the balance sheet of Bestari Inc. as at 31 December, 2021. Current Assets Net Fixed Assets Total Assets RM REQUIRED: 2,750,000.00 3,200,000.00 5,950,000.00 Account Payable Accrued Expenses Note Payables Long-term debt Common Stocks Retained Earnings Total Debt and Equity RM 900,000.00 800,000.00 0.00 Bestari Inc. is about to embark on an advertising campaign, which is expected to boost its sales from the current level of RM5 million to RM6 million by the end of next year. The firm is currently operating at full capacity and will have to increase its investment in both current and fixed assets to support the projected level of new sales. The firm estimates that both categories of assets will rise in direct proportion to the projected increase in sales. The firm's net profits were 5 percent of the current year's sales but are expected to rise to 8 percent of next year's sales. Dividends are assumed to be 50 percent of net income. Bestari Inc.'s accounts payable and accrued expenses are expected to vary directly with sales. In addition, notes payable will be used to supply the funds needed to finance next year's operations that are not forthcoming from other sources. Develop a pro-forma balance sheet for the firm based on scenarios given. 1,139,200.00 1,580,600.00 1,530,200.00 5,950,000.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started