$1.$ Zalora Berhad is evaluating its financing requirements for $2024.$ The firm has been in business for only one year, but its CFO predicts that the firm$’$s operating expenses, current assets, net fixed assets, and current liabilities will remain at their current proportion of sales. In $2023,$ Zalora had RM$12$ million in sales with net income of RM$1\mathrm{.}2$ million. The firm anticipates that next year$’$s sales will reach RM$15$ million with net income of RM$2$ million. Given its present high rate of growth, the firm retains all of its earnings to help defray the cost of new investments.

The firm$’$s balance sheet for the year just ended is as follows:

Zalora Berhad

Balance Sheet as at Dec $31$st $2023$

Items RM $\%$ of Sales

Current assets

Net fixed assets

Total assets

Liabilities & Owners$’$ Equity

Accounts payable

Long$-$term debt

Total liabilities

Common stock

Paid$-$in capital

Retained earnings

Total common equity

Total liability and owners$’$ equity

$3,000,000$

$6,000,000$

$9,000,000$

$3,000,000$

$2,000,000$

$5,000,000$

$1,000,000$

$1,800,000$

$1,200,000$

$4,000,000$

$9,000,00025\%$

$50\%$

$25\%$

NA

NA

NA

Notes: NA $-$not applicable, These account balances do not vary with sales and are assumed to remain constant for purposes of forecasting next year$’$s financing requirements.

Required:

Estimate Zalora$’$s total financing requirements $($total assests$)$ and its net funding requirements $($discretionary financing neede$)$ for $2024$ by preparing Proforma Balance Sheet $2024.$

$2.$ Torpedo Appliances Corporation projects next year$’$s sales to be RM$20$ million. Current sales are at RM$15$ million, based on current assets of RM$7$ million and fixed assets of RM$8$ million. The firm$’$s net profit margin is $5\%$ after taxes. Torpedo forecasts that current assets will rise in direct proportion to the increase in sales but that fixed assets will increase by only RM$150,000.$ Currently, Torpedo has RM$1\mathrm{.}5$ million in accounts payable $($which vary directly with sales$),$ RM$7$ million in long$-$term debt $($due in $10$ years$),$ and common equity $($including RM$4$ million in retained earnings$)$ totaling RM$6\mathrm{.}5$ million. Torpedo plans to pay RM$500,000$ in common stock dividends next year.

Required:

a$.$ Prepare the proforma balance sheet $2024$ based on the above information.

b$.$ What is the Torpedo$’$s totally financing needs $($TFN$)–$ that is$,$ total assets for the coming year?

c$.$ Given the firm$’$s projections and dividend payment plans, what are its discretionary financing needs $($DFN$)?$