50.1K

Verified Solution

Link Copied!

Balance Sheet 2019/12/31 Current Assets Cash 563,697 Inventory 817,120 Accounts Receivables 32,906 Current Assets 1,413,723 Fixed Assets 1,048,419 Total Assets 2,462,142 Current Liabilities Accounts payable 755685 Notes payable 47230 short term debt 141691 Total Current Liabilities 944606 Long term Liabilities 157,510 Shareholders Equity 1,360,026 Total Liabilities and Shareholder Equity 2,462,142

Statement of Income	2019/12/31
Sales (on Credit)	5,698,723
- Cost of goods sold	4,812,246
Total Income	886,477
+ Other Revenues	43,531
Total Revenues	930,008
-Admin and Marketing Expenses	156,445
-Depreciation	3,218
Operating Profit (EBIT)	770,345
- Interest Expenses	4,835
Net Income Before Zakat	765,510
Zakat (tax)	20,146
Net Income	745,364

Additional Information:

Next years sales are projected to increase by 8%.

The following items will change in proportional to sales.

1. Cost of goods sold
2. Admin and Marketing Expenses
3. All assets
4. Accounts payable

The following items will not change in proportional to sales.

5. Long term Debt (liabilities) and Shareholders equity are not.

Assume a dividend payout ratio of 60%. Zakat tax rate of 4%.

Compute the following:

1. EXTERNAL FUND REQUIREMENT

1. Create the pro-forma statement for the year 2020.
2. What is the external nancing needed for the year 2020?
3. Reconcile the pro-forma statements ?
4. Calculate the Internal and external growth rate for the year 2019.

2. CASH & LIQUIDITY MANAGEMENT for the year 2019

5. Calculate the operating cycle for the year 2019.
6. Calculate the cash cycle for the year 2019.
7. For how many days does the company need to arrange for cash funding for the year 2019.

pxyz Corporation Pro forma Income Statement		xyz Corporation Pro forma Balance Sheet
Sales (on Credit)		I. Current Assets		III. Current Liabilities
- Cost of goods sold		Cash		A/Payable
Total Income		Inventory		Notes payable
+ Other Revenues		Accounts Receivables		Short term debt
Total Revenues		Total CA		Total CL
-Admin and Marketing Expenses		II. Fixed Assets		IV. Long-term debt
-Depreciation				V. Equity
Operating Profit (EBIT)
- Interest Expenses		TOTAL ASSETS		TOTAL LIAB & EQUITY
Net Income Before Zakat
Zakat (tax)
Net Income
Dividends ( )
Retained Earnings ( )

Answer & Explanation Solved by verified expert

See Answer