Refer to the following financial statements for Kodenko Inc:Prepare forecasts of its income statement, statement of financial position and statement of cash flows for 2020 under the following assumptions:a. All financial ratio remains at 2019 level.b. Kodenko will not record restructuring costs for 2020.c. Taxes payable are at the 2019 level of RM544 million.d. Depreciation expense charged to Selling, general and administrative is RM765million for 2019 and 2018 repectively.e. Gross PPE is RM 12,982 million and RM12,963 million for 2019 and 2018 respectively.f. Projected current maturities of long term debt are RM13 million for 2020.g. Capital expenditure for 2019 and 2018 are RM1,047 and RM783, respectively Current portion of long term debt156148Accrued income taxes544606Total current liabilities5,3541,6666,2151,1662,722Long term debts,net of current portionPostemployment liabilities2,728Other long term liabilities720681Total liabilities10,46810,784Shareholders equityCommon stock RM2,50 par value950,000,000 share authorised:issued 391,292,760 shares in2019 and 2018; 290,929,701 and 290,484,266 shareoutstanding in 2019 and 2018978978Additional paid in capital849871Retained earning7,4317,869Accumulated other comprehensive loss5974828,6619,236Treasury stock,at cost; 100,363,059 shares in 2019 and100,808,494 shares in 2018(5,767) (5,808)Total shareholders' equityTotal liabilities and shareholders' equity2,8943,42813,36214,212 Refer to the following financial statements for Kodenko Inc:Income StatementFor year ended December 31(in millions)201920182017(RM)(RM)(RM)13,994 14,0898,375Net Sales13,234Cost of goods soldGross profit8,6708,0864,5645,6196,003Selling, general and administrative expensesresearch and development costs2,7812,6652,846779784817Restructuring costs9credit) and othersEarnings from operations659(44)3503452,2141,990interest expense219178142Other income(charges)(18)96261Earnings before income taxes1082,1322,109Provision for income taxes32725717Net earning761,4071,392Statement of financial PositionAt December 31(in millions, except share and pershare data)20192018(RM)(RM)AssetsCurrent assetsCash and cash equivalents448246Receivables, net2,3372,653Inventories, net1,1371,718Deferred income taxes521575Other current assets240299Total current assets4,6835,491Property plant and equipment, netGoodwill,net5,6595,919948947Other longterm assets2,0721,855Total assets13,36214,212Liabilities and shareholders equityCurrent liabilitiesAccount payable and other current liabilitiesShort term borrowings3,2763,4031,3782,058

Projected Financial Statement - It is the process of analyzing a company's financial based on…

Answered: Refer to the following financial…

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

Refer to the following financial statements for Kodenko Inc:

Prepare forecasts of its income statement, statement of financial position and statement of cash
flows for 2020 under the following assumptions:
a. All financial ratio remains at 2019 level.
b. Kodenko will not record restructuring costs for 2020.
c. Taxes payable are at the 2019 level of RM544 million.
d. Depreciation expense charged to Selling, general and administrative is RM765million for
2019 and 2018 repectively.
e. Gross PPE is RM 12,982 million and RM12,963 million for 2019 and 2018 respectively.
f. Projected current maturities of long term debt are RM13 million for 2020.
g. Capital expenditure for 2019 and 2018 are RM1,047 and RM783, respectively

Current portion of long term debt
156
148
Accrued income taxes
544
606
Total current liabilities
5,354
1,666
6,215
1,166
2,722
Long term debts,net of current portion
Postemployment liabilities
2,728
Other long term liabilities
720
681
Total liabilities
10,468
10,784
Shareholders equity
Common stock RM2,50 par value
950,000,000 share authorised:issued 391,292,760 shares in
2019 and 2018; 290,929,701 and 290,484,266 share
outstanding in 2019 and 2018
978
978
Additional paid in capital
849
871
Retained earning
7,431
7,869
Accumulated other comprehensive loss
597
482
8,661
9,236
Treasury stock,at cost; 100,363,059 shares in 2019 and
100,808,494 shares in 2018
(5,767) (5,808)
Total shareholders' equity
Total liabilities and shareholders' equity
2,894
3,428
13,362
14,212

Refer to the following financial statements for Kodenko Inc:
Income Statement
For year ended December 31(in millions)
2019
2018
2017
(RM)
(RM)
(RM)
13,994 14,089
8,375
Net Sales
13,234
Cost of goods sold
Gross profit
8,670
8,086
4,564
5,619
6,003
Selling, general and administrative expenses
research and development costs
2,781
2,665
2,846
779
784
817
Restructuring costs9credit) and others
Earnings from operations
659
(44)
350
345
2,214
1,990
interest expense
219
178
142
Other income(charges)
(18)
96
261
Earnings before income taxes
108
2,132
2,109
Provision for income taxes
32
725
717
Net earning
76
1,407
1,392
Statement of financial Position
At December 31(in millions, except share and per
share data)
2019
2018
(RM)
(RM)
Assets
Current assets
Cash and cash equivalents
448
246
Receivables, net
2,337
2,653
Inventories, net
1,137
1,718
Deferred income taxes
521
575
Other current assets
240
299
Total current assets
4,683
5,491
Property plant and equipment, net
Goodwill,net
5,659
5,919
948
947
Other longterm assets
2,072
1,855
Total assets
13,362
14,212
Liabilities and shareholders equity
Current liabilities
Account payable and other current liabilities
Short term borrowings
3,276
3,403
1,378
2,058

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