As a CFO of a firm, you are responsible to forecast for the next fiscal year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As a CFO of a firm, you are responsible to forecast for the next fiscal year. Currently firm's sales is RM3 million and the net income is RM0.5 million and its current assets and fixed assets of 410,000 and RM1,150,000. Currently the firm has an account payable of RM450,000, long term debt of RM350,000, common stock of RM310,000 and its retained earnings are RM450,000. You expected the sales to increase to RM4 million and firm plans to pay RM0.25 million as dividends for the next year. Required: a) Construct a projected balance sheet for the next year. (12 marks) b) Do you think your firm should borrow from the bank? (3 marks) Explain. As a CFO of a firm, you are responsible to forecast for the next fiscal year. Currently firm's sales is RM3 million and the net income is RM0.5 million and its current assets and fixed assets of 410,000 and RM1,150,000. Currently the firm has an account payable of RM450,000, long term debt of RM350,000, common stock of RM310,000 and its retained earnings are RM450,000. You expected the sales to increase to RM4 million and firm plans to pay RM0.25 million as dividends for the next year. Required: a) Construct a projected balance sheet for the next year. (12 marks) b) Do you think your firm should borrow from the bank? (3 marks) Explain.
Expert Answer:
Answer rating: 100% (QA)
a Proforma Balance sheet Assets Liab Equity Current Assets 546667 Accounts payable 600000 Fixed Asse... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following table gives data on new passenger cars sold in the United States as a function of several variables. a. Develop a suitable linear or loglinear model to estimate a demand function for...
-
The daily exchange rate of one dollar in euros during the first three months of 2007 can be inferred to have the following distribution. X P(x) 0.73 ... 0.05 0.74 ... 0.10 0.75 ... 0.25 0.76 ... 0.40...
-
The following table gives data on percent change per year for stock prices (Y) and consumer prices (X) for a cross section of 20 countries. a. Plot the data in a scattergram. b. Regress Y on X and...
-
A circular transistor of 10-mm diameter is cooled by impingement of an air jet exiting a 2-mm-diameter round nozzle with a velocity of 20 m/s and a temperature of 15C. The jet exit and the exposed...
-
For the conditions of Exercise 7 and the data in Table 11.1, carry out a test of the following hypotheses: H0: 1 = 2 = 0, H1: The hypothesis H0 is not true.
-
Construct the double-entry accounts of Helen Clews from the following transactions and balance off each account at the end of the month. 2010 1 November Clews opens a business bank account with 8,500...
-
Are there any cases you can find where a supplemental pleading was allowed because new facts have been alleged? What were the new facts?
-
The unaudited income statement for Lomas & Sons Limited for its year ended December 31, 2012 shows the following: The information in the following notes has already been reflected in the above income...
-
What is meant by a service factory? What features does Joseph have in mind for the new facility?
-
Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Determine the amounts Buckle reports for total assets, total liabilities, and total stockholders...
-
2000 4000 3000 b. 1 3 Determine beams displacements and knot force vector (F}^2. Use hexagonal bar elements. The cross section of the beams is rectangular, b=30 mm and h= 100 mm The magnitude of the...
-
1. Two carts of masses 2 kg and 3 kg respectively are initially at rest on a frictionless track. The carts are pushed towards each other from opposite directions. Upon collision, they stick together...
-
Graph the circle x + y - 4x - 6y + 4 = 0 Identify the center and radius
-
Technology has opened many doors. Just one of those doors for businesses large or small is the ability to launch and sustain a presence in the global market. However, this is easier said than done....
-
6. (a) Nuclear and subatomic particles decays and reactions. Activity and radiation dose. (c) Which of the four fundamental interactions do you expect to dominate in each of the following processes...
-
3 The information collected by a performance management system is most frequently used for salary administration, performance feedback and the identification of employee strengths and weaknesses....
-
Explain, in your own words, what Duggal means when he discusses rigor without rigidity. (a) What have you experienced in your organization? (b) Are there processes and procedures that are too...
-
What key concerns must functional tactics address in marketing? Finance? POM? Personnel?
-
For a sufficiently large d.f., the chi-square distribution can be approximated by the standard normal distribution as: Z = 2x2 - 2k - 1 ~ N (0, 1). Let k = 50. a. Use the chi-square table to find out...
-
Establish Eq. (B.15).
-
To study the relationship between capacity utilization in manufacturing and inflation in the United States, we obtained the data shown in Table 3-5 (found on the textbook's Web site). In this table,...
-
The audit procedures applied to accrued liabilities differ from those applied to accounts payable because a. Accrued liabilities balances are less material than accounts payable balances. b. Evidence...
-
Match each assertion to the related audit objective. Each assertion may be used once, more than once, or not at all. Audit objective 1. To determine whether the amount shown as invento- ries in the...
-
Audit procedures should be designed to accomplish specific audit objectives. Review the following inventory audit procedures and indicate which audit objectives are being accomplished and how. a....
Study smarter with the SolutionInn App