requiredusing percentage of sales method, prepare 2019 proforma financial statement and determine external financing needed? -(e) XYZ Ltd. had the following financial statements for the year ended 2018.XYZ Ltd.Statement of Financial PositionAs at 31" Dec. 2018Sh. 'm'AssetsCesh and marketable securitiesIn atories -2400 --- 0le Recasraboles24005000500010,000200Tot:1 Current AssetsNet Fixed AssetsTet l AssetsPage 1 of 4 Sh.'m'Liabilities and EquityAccount payableNotee pavable1,000100Total current liabilitiesLong term liabilitiesCommon StockRetained EarningsTotal Liabilities & Equity2.0001,0005,0002,00010.000XYZ Ltd.Income Statement for the year ended 31" Dcc. 2018Sh.'m'SalesLess: Cost of sales (60%)Selling & Adm. ExpensesEBIT20,000(12,000)(7,000)1,000Less: Interest100EBT900Less tax (40%)360EAT540216324Less Common DividendRetained EarningsThe following additional information is also provided:i)ii)The company operated at full capacity in 2018.Each type of asset grows proportionally with sales.Payables grow proportionally with sales.2018 profit margin and dividend payout ratio will be maintained in 2019.iii)iv)Sales are cxpected to increase by Sh. 5,000 million in 2019.

The question is related to performa financial PerStatement for the year ended 31st December 2019.…

(c) XYZ Ltd. had the following financial statements for the year ended 2018. XYZ Ltd. Statement of Financial Position As at 31" Dec. 2018 Sh. 'm Assets Cesh and marketable securities In vatories- 2400 - ele Recarabbles 2400 5000 5000 10,000 200 Tot:1 Current Assets Net Fixed Assets Tetel Assets Page 1 of 4

(c) XYZ Ltd. had the following financial statements for the year ended 2018. XYZ Ltd. Statement of Financial Position As at 31" Dec. 2018 Sh. 'm Assets Cesh and marketable securities In vatories- 2400 - ele Recarabbles 2400 5000 5000 10,000 200 Tot:1 Current Assets Net Fixed Assets Tetel Assets Page 1 of 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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required using percentage of sales method, prepare 2019 proforma financial statement and determine external financing needed?

-(e) XYZ Ltd. had the following financial statements for the year ended 2018.
XYZ Ltd.
Statement of Financial Position
As at 31" Dec. 2018
Sh. 'm'
Assets
Cesh and marketable securities
In atories -
2400 --- 0le Recasraboles
2400
5000
5000
10,000
200
Tot:1 Current Assets
Net Fixed Assets
Tet l Assets
Page 1 of 4

Sh.'m'
Liabilities and Equity
Account payable
Notee pavable
1,000
100
Total current liabilities
Long term liabilities
Common Stock
Retained Earnings
Total Liabilities & Equity
2.000
1,000
5,000
2,000
10.000
XYZ Ltd.
Income Statement for the year ended 31" Dcc. 2018
Sh.'m'
Sales
Less: Cost of sales (60%)
Selling & Adm. Expenses
EBIT
20,000
(12,000)
(7,000)
1,000
Less: Interest
100
EBT
900
Less tax (40%)
360
EAT
540
216
324
Less Common Dividend
Retained Earnings
The following additional information is also provided:
i)
ii)
The company operated at full capacity in 2018.
Each type of asset grows proportionally with sales.
Payables grow proportionally with sales.
2018 profit margin and dividend payout ratio will be maintained in 2019.
iii)
iv)
Sales are cxpected to increase by Sh. 5,000 million in 2019.

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