QUESTION 4 Prepare a summarize proforma income statement for Shamsuri Sdn Bhd for the period ending 31 December 2006 based on the following information: i) Actual sales 2005 ii) Projected sales 2006 iii) Gross profit margin iv) Operating profit (EBIT) margin v) Time interest earned vi) Tax rate vii) Dividend pay out ratio QUESTION 5 Sutra Moden Bhd's 2014 financial statements are as follow: Balance Sheet as at December 31, 2014 (RM'000) Cash Accounts Receivable Inventories Net fixed assets Total assets Accounts payable Accruals Notes Payable Mortgage bonds Common stocks Retained Earnings Total Liabilities and Equity Increase by 20% of 2005 actual sales 1,080 6,480 8,000 10,500 26,060 RM1 million 3,000 2,500 2,100 3,000 3,000 12,460 26,060 40% 25% 6 times 30% 0.40 QUESTION 5 Sutra Moden Bhd's 2014 financial statements are as follow: Cash Accounts Receivable Inventories Net fixed assets Total assets Balance Sheet as at December 31, 2014 (RM'000) Accounts payable Accruals Notes Payable Mortgage bonds Common stocks Retained Earnings Total Liabilities and Equity i) ii) iii) iv) 5 Sales Operating Costs Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (40%) Net Income Dividends (45%) Addition to retained earnings 1,080 6,480 8,000 10,500 26,060 3,000 2,500 2,100 3,000 3,000 Income Statement for the year ended December 31, 2014 (RM000) 32,500 28,440 4,060 460 3,600 1,440 2,160 972 1,188 12,460 26,060 Given the following additional information, you are required to develop a pro forma balance sheet for Suria Moden Bhd: Sales in 2015 are projected to increase by 15 percent. The company was operating at full capacity in 2014. The net profit margin and dividend payout ratio in 2015 are expected to remain the same as in 2014. Any required additional financing will be absorbed through notes payable.