-(e) XYZ Ltd. had the following financial statements for the year ended 2018. XYZ Ltd. Statement of Financial Position As at 31" Dec. 2018 Sh. 'm' Assets Cesh and marketable securities In atories -...

required using percentage of sales method, prepare 2019 proforma financial statement and determine external financing needed?


Extracted text: -(e) XYZ Ltd. had the following financial statements for the year ended 2018. XYZ Ltd. Statement of Financial Position As at 31" Dec. 2018 Sh. 'm' Assets Cesh and marketable securities In atories - 2400 --- 0le Recasraboles 2400 5000 5000 10,000 200 Tot:1 Current Assets Net Fixed Assets Tet l Assets Page 1 of 4


Extracted text: Sh.'m' Liabilities and Equity Account payable Notee pavable 1,000 100 Total current liabilities Long term liabilities Common Stock Retained Earnings Total Liabilities & Equity 2.000 1,000 5,000 2,000 10.000 XYZ Ltd. Income Statement for the year ended 31" Dcc. 2018 Sh.'m' Sales Less: Cost of sales (60%) Selling & Adm. Expenses EBIT 20,000 (12,000) (7,000) 1,000 Less: Interest 100 EBT 900 Less tax (40%) 360 EAT 540 216 324 Less Common Dividend Retained Earnings The following additional information is also provided: i) ii) The company operated at full capacity in 2018. Each type of asset grows proportionally with sales. Payables grow proportionally with sales. 2018 profit margin and dividend payout ratio will be maintained in 2019. iii) iv) Sales are cxpected to increase by Sh. 5,000 million in 2019.