CHAPTER THREE Financial Forecasting and Planning 96 November 2005: Section B. Q 2(a) Prepare a pro forma balance sheet for Restu Berhad for the year 2005. All the relevant information is given below: Restu Berhad Balance Sheet As At 31 December 2004 (RM) Cash 100,000 Accounts payable Marketable securities 130,000 Accruals Accounts receivable 150,000 Notes payable Inventories 320,000 Long term debt Fixed assets (net) 850,000 Common stock TOTAL ASSETS 1,550,000 Retained earnings TOTAL LIAB. & EQUITY 220,000 100,000 300,000 470,000 310,000 150,000 1,550,000 Sales for 2004 were RM10 million and it was expected to increase to RM15 million in 2005. The company is operating at full capacity. Net income for 2004 was RM500,000. Cash dividend for shareholders in 2004 amounted to RM200,000. (12 marks)