Assume that X Ltd has found a consistent relationship among the following accounts as a percentage of sales.

i.          Current assets – 65%

ii.          Net fixed assets – 25%

iii.         Accounts payable – 10%

iv.         Other current liabilities – 12%

v.         Net profit after taxes – 5%.

The company’s sales for year 1 (2014) were sh.10,000,000 and are expected to grow at 10% every year. The balance sheet as at 31st December 2014 is given below:-

	Sh.’000’		Sh.’000’
Fixed assets	2,500	Ordinary capital	2,000
Current assets	6,500	Retained earnings	2,600
		Long term loan	1,000
		Current liabilities
		Accounts payable	1,000
		Notes payable	1,200
		Other current liabilities	1,200
	9,000		9,000

Required:

i.              Determine X Ltd’s financial requirements

ii.             Prepare a proforma balance sheet as at 31. 12. 2019.