b$)$ Study the income statement and balance sheet shown on the next page and answer the

following questions.

Supposing that the $2022$ sales are projected to increase by $25\%$ over the year $2021$ sales and that

there is proportional relationship between sales to operating costs, interest expenses, current

assets and spontaneous liabilities. The company has been operating at full capacity and planned

to maintain the dividend ratio and profit margin position of the previous year.

Required

i$.$ Using the Percentage of Sales proforma method, compute the additional funds

needed $($AFN$),$ assuming that the company was operating at full capacity in the

year $2021.$

$(10$ Marks$)$

ii$.$ Using the Formula method, compute the additional funds needed, assuming that

the company was operating at full capacity in the year $2021.$

$(5$ Marks$)$

Table $1$: Income statement for $2021$

Table $2$: Balance Sheet for $2021$