Desh Bondhu Polymer Co. prepare a financial plan. Use thefinancial statements and the other information provided in whatfollows lo prepare the financial plan
Desh Bondhu Polymer
Statement of Profit & Loss
‘000
Particulars | Actual figure of the year 2019 | Initial forecast ( fort the year 2020) |
Sales Revenue Less: Cost of Goods sold Gross profits Less: Operating expenses Less: Depriciation EBIT Less: Interest EBT Less: Taxes @ 40% Net income Less: Cash Dividends To retained earnings | Tk 15,000 11,250 3,750 1,250 300 Tk. 2,200 384 1,816 726.4 1,089.6 435.84 Tk. 653.76 | Tk. 18,000 13,500 4,500 1,500 360 2.640 384 2,256 902.4 1,353.6 541.44 812.16 |
Desh Bondhu Polymer
Statement of financial Position as on December 31,2019
Assets | Amount (‘000) | Liabilities and owners Equity | Amount (‘000) |
Cash Marketable securities Accounts receivables Inventories Total current assets Net fixed assets Total assets | Tk 150 800 1,000 2.700 Tk. 4,650 3.800 Tk 8.450 | Accounts payable Taxes payable Notes Payable (6%) Total current liabilities Long-term bonds (12%) Common slock Retained earnings Total liabilities and equity | Tk 600 300 400 Tk 1,300 3,000 1,300 2.850 Tk 8.450 |
The following financial information is also available:
- The firm operated at full capacity in 2019. Itexpects sales to increase by 20% during 2020.
- The firm wishes to maintain a minimum cash balanceof Tk. 200,000.
- The firm’s all types of assets, accounts payableand taxes payable will change directly in response to changes insales in 2020.
- Desh Bondhu Polymer Co. plans to raise theadditional funds needed as follows:
Long-term bonds 60%, and Notes payable 40%.
Requirements:
i. List the above statements, andpercentages of sales method to identify how much outside
Financing is required.
ii. According to stated structure, make the adjusted financialstatements incorporating financing feedback.
