The following is the balance sheet of XYZ Ltd as at 31st December 2008: 10% debentures...

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The following is the balance sheet of XYZ Ltd as at 31st December 2008: 10% debentures Trade creditors Accrued expenses Additional Information: 1. 2. 3. 4. Kshs.'000' 300 100 400 100 70 150 50 30 400 The sales for year 2008 amounted to Kshs.500, 000. The sales will increase by 15 % during year 2009 and 10 % during year 2010. The after tax return on sales is 12 % which shall be maintained in future. The company's dividend payout ratio is 80 %. This will be maintained during forecasting period. Any additional financing from external sources will be affected through the issue of commercial paper by company. Required: Determine the amount of external financing for 2 years up to 31st December 2010. The following is the balance sheet of XYZ Ltd as at 31st December 2008: 10% debentures Trade creditors Accrued expenses Additional Information: 1. 2. 3. 4. Kshs.'000' 300 100 400 100 70 150 50 30 400 The sales for year 2008 amounted to Kshs.500, 000. The sales will increase by 15 % during year 2009 and 10 % during year 2010. The after tax return on sales is 12 % which shall be maintained in future. The company's dividend payout ratio is 80 %. This will be maintained during forecasting period. Any additional financing from external sources will be affected through the issue of commercial paper by company. Required: Determine the amount of external financing for 2 years up to 31st December 2010.

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The detailed answer for the above question is provided below Answer Net Profit 12 of Sales 12100 x 5... View the full answer