CONFIDENTIAL4BA/DEC 2019/FIN242/262/260PART BQUESTION 1As a financial manager of Rainbow Holdings, prepare a pro-forma statement ofa)financial position as at 31$t December 2019 and compute additional fund needed bythe firm. The firm's current revenue stood at RM2,375,000 and the firm is planning toincrease its revenue next year by 40 percent. Currently, the firm is operating at fullсарacity.RAINBOW HOLDINGSSTATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018Cash100,000180,000570,000720,000Accruals47,000200,00060,000228,000Prepaid ExpensesTrade CreditorAccount ReceivableTax AccrualsAccrued wagesNotes PayableInventoriesPlant & Equipment3,000,000175,000Bond1,020,000Common Stock2,000,000Retained Earnings840,000TOTAL ASSETS4,570,000TOTAL LIABILITIES & EQUITIES4,570,000Additional information:The net earnings for the year was RM365,250Dividend currently paid was RM249,375

Additional is required by a firm when it is planning to increase the scale of operation. The…

PART B QUESTION 1 As a financial manager of Rainbow Holdings, prepare a pro-forma statement of a) financial position as at 31st December 2019 and compute additional fund needed by the firm. The firm's current revenue stood at RM2,375,000 and the firm is planning to increase its revenue next year by 40 percent. Currently, the firm is operating at full сарacity. RAINBOW HOLDINGS STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 100,000 180,000 570,000 Cash Accruals 47,000 200,000 60,000 Prepaid Expenses Trade Creditor Account Receivable Tax Accruals Accrued wages Notes Payable Inventories 720,000 228,000 175,000 Plant & Equipment 3,000,000 Bond 1,020,000 Common Stock 2,000,000 840,000 Retained Earnings TOTAL ASSETS 4,570,000 TOTAL LIABILITIES & EQUITIES 4,570,000 Additional information: The net earnings for the year was RM365,250 Dividend currently paid was RM249.375

PART B QUESTION 1 As a financial manager of Rainbow Holdings, prepare a pro-forma statement of a) financial position as at 31st December 2019 and compute additional fund needed by the firm. The firm's current revenue stood at RM2,375,000 and the firm is planning to increase its revenue next year by 40 percent. Currently, the firm is operating at full сарacity. RAINBOW HOLDINGS STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 100,000 180,000 570,000 Cash Accruals 47,000 200,000 60,000 Prepaid Expenses Trade Creditor Account Receivable Tax Accruals Accrued wages Notes Payable Inventories 720,000 228,000 175,000 Plant & Equipment 3,000,000 Bond 1,020,000 Common Stock 2,000,000 840,000 Retained Earnings TOTAL ASSETS 4,570,000 TOTAL LIABILITIES & EQUITIES 4,570,000 Additional information: The net earnings for the year was RM365,250 Dividend currently paid was RM249.375

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

View Policies Current Attempt in Progress On June 1, 2022, Pharoah Company was started with an initial investment in the company of $21,250 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2022, and the revenues and expenses for the month of June, its first month of operations: Cash Accounts receivable Service revenue Supplies Advertising expense Equipment Common stock $ 5,600 4,400 8,500 2,342 (a1) 400 26,800 21,250 Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense Prepare an income statement for the month of June. PHAROAH COMPANY Income Statement During June, the company issued no additional stock but paid dividends of $1,683. LA $14,000 पी 900 1,125 690 210 1,400 $
Problem 22-10 The financial manager has determined the following schedules for the cost of funds: Cost of Debt Debt ratio 0% 10 20 30 40 50 60 Assets 4 4 $400 Assets 4 4 5 a. Determine the firm's optimal capital structure. Round your answer to two decimal places. The optimal capital structure consists of -Select- % debt resulting in the cost of capital equal to 7 b. Construct a simple pro forma balance sheet that shows the firm's optimal combination of debt and equity for its current level of assets. Round your answers to the nearest dollar.. Balance Sheet Cost of Equity 11%) 11 11 11 12 13 14 Debt Equity %. $ 400 c. An investment costs $500 and offers annual cash inflows of $186 for four years. Should the firm make the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.. The Investment -Select- be made since the internal rate of return that is % -Select- o the cost of capital. d. If the firm makes this additional investment, how should its…
Industrial Industries' 2023 balance sheet shows current assets of $1,400 and current liabilities of $1,200. Their 2022 balance sheet shows current assets of $1,575 and current liabilities of $1,250. What was the firm's investment in net working capital for 2023? Question 5 options: ($63) ($175) ($125) $63 $188
Cash Flow Data for Interceptors, Incorporated. 2018 2019 2020 2018 Beginning Cash $ 35 $ 40 $ 45 $ 50 Cash from Operations $ 127 $ 125 $ 122 $ 117 Net Capital Spending ($ 140) ($ 130) ($ 140) ($ 145) Cash from Financing $ 18 $ 15 $ 23 Ending Cash $ 40 $ 45 $ 50 $ 55 Based on the cash flow data in the table for Interceptors Incorporated, which of the following statements is (are) correct? 1. This firm appears to be a good investment because of its steady growth in cash. 2. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows. 3. Financing activities have been increasingly important for this firm's operations, at least in the short run.
A commercial real estate investment fund must report its quarterly investment performance to investors. A summary of its (1) beginning and end-of-quarter assets and equity and (2) cash inflows and outflows during the quarter are as follows: Beginning of Quarter During Quarter $69 million Cash $10 million NOI from operations $519 million Market value of props $2 million Paid management fees $39 million Other Investments $25 million Distributions to investors $338 million Fund debt $219 million Investor contributions $194 million Property acquisitions $44 Property dispositions Other investments will earn 4% interest (1% per quarter) and property debt will be at a 6% rate (1.5% per quarter). The properties were appraised at the end of the quarter for $674 million. Assume any interest on short-term investments is offset by interest paid on short-term debt. Required: a. What would be the beginning equity value? b. What would be the ending equity value (MVEE)?…