CHAPTER THREE Financial Forecasting and Planning 97 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 220,000 100,000 Marketable securities 130,000 Accruals 150,000 Accounts receivable Inventories Notes payable 300,000 320,000 Long term debt 470,000 Fixed assets (net) 850,000 310,000 Common stock Retained earnings 150,000 TOTAL ASSETS 1,550,000 TOTAL LIAB. & EQUITY 1,550,000 i) Sales for 2004 were RM10 million and it was expected to increase to RM15 million in 2005. The company is operating at full capacity. ii) iii) Net income for 2004 was RM500,000. iv) Cash dividend for shareholders in 2004 amounted to RM200,000. (12 marks)