I$$d like to ask an expert

Instructions

Complete the series of questions that relate to the content. Use the attached Excel answer grid as a guide to help with your forecast. The

questions are based on the forecast answers.

Forecast I$//$S and B$//$S with debt plug value

The attachment contains the $2023$financial statements for Devlin Distributions Co$.$

Use the following data to forecast the $2024$income statement and balance sheet and calculate the overdraft required.

The volume of sales units will increase by $12$per cent.

Investment in fixed assets will be R$14$million$.$

Cost of goods sold, accounts receivable, inventories and accounts payable will increase proportionally to sales.

Dividends will equal $20$per cent of profit after tax.

The depreciation expense will increase to R$12$million$.$

General selling expenses, tax rate, long$-$term debt, and common stock will not change.

Devlin Distributions Co want to maintain a minimum cash balance of R $5$million$.$

Ignore any increase in the interest expense that might come from a different debt amount.

NOTE: Not all questions count for the same amount of marks.

Devlin Distribution Co Forecast.xlsx darr$6$

Question $6$

What is the forecasted Sales amount for $2024?$

A$.102$

B$.100\mathrm{.}8$

C$.91\mathrm{.}2$

D$.112$

Question $7$

What is the forecasted Cost of Goods Sold $($COGS$)$for $2024?$

A$.60\mathrm{.}48$

B$.62$

C$.66$

D$.54$

Question $8$

What is the forecasted tax amount for $2024?$

A$.3\mathrm{.}52$

B$.4\mathrm{.}65$

C$.4\mathrm{.}26$

D$.7\mathrm{.}85$

Question $9$

What is the forecasted dividends amount in $2024?$

A$.1\mathrm{.}97$

B$.2\mathrm{.}0$

C$.1\mathrm{.}5$

D$.1\mathrm{.}81$

Question $10$

What is the addition to the retained earnings for the year $2024?$

A$.7\mathrm{.}9$

B$.27\mathrm{.}25$

C$.27\mathrm{.}9$

D$.7\mathrm{.}25$

Question $11$

What is the Fixed Asset amount for $2024?$

A$.84\mathrm{.}00$

B$.70\mathrm{.}00$

C$.72\mathrm{.}00$

D$.74\mathrm{.}00$

Question $12$

What is the accounts receivable amount for $2024?$

A$.17\mathrm{.}12$

B$.17\mathrm{.}00$

C$.19\mathrm{.}04$

D$.29\mathrm{.}00$

Question $13$

What is the inventories amount for $2024?$

A$.25\mathrm{.}76$

B$.24\mathrm{.}2$

C$.23$

D$.35$

Question $14$

What is the accounts payable amount for $2024?$

A$.-8\mathrm{.}96$

B$.-9\mathrm{.}2$

C$.8\mathrm{.}00$

D$.8\mathrm{.}96$

Question $15$

What is the retained earnings in the balance sheet in $2024?$

A$.7\mathrm{.}25$

B$.27\mathrm{.}25$

C$.27\mathrm{.}90$

D$.21\mathrm{.}2$

Question $16$

What is the Overdraft amount for $2024?$

A$.15\mathrm{.}95$

B$.15\mathrm{.}59$

C$.23\mathrm{.}2$

D$.14\mathrm{.}94$