QUESTION 2 Additional information: i) Sales in 2003 was RM10 million and it is projected...
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QUESTION 2 Additional information: i) Sales in 2003 was RM10 million and it is projected to increase by 20%. ii) The company is operating at full capacity. iii) The net profit margin for this company is 5% and dividend payout ratio is 50%. a) Prepare a proforma balance sheet for FELIZZA INFO Inc. Determine the additional funds needed using percent of sales method. (16 marks) b) Differentiate "spontaneous" and "discretionary" accounts. (4 marks) QUESTION 2 Additional information: i) Sales in 2003 was RM10 million and it is projected to increase by 20%. ii) The company is operating at full capacity. iii) The net profit margin for this company is 5% and dividend payout ratio is 50%. a) Prepare a proforma balance sheet for FELIZZA INFO Inc. Determine the additional funds needed using percent of sales method. (16 marks) b) Differentiate "spontaneous" and "discretionary" accounts. (4 marks)
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