Summerfields Sdn Bhd Balance Sheet as at 31 December 2020 (RM’000) Cash 400 Account payable 1,200 Marketable securities 500 Accrued wages 1,200 Accounts receivable 750 Notes payable 700 Inventories 500 Mortgage payable 2,200 Net Fixed Asset 4,850 Common stock 500 Retained earnings 1,200 TOTAL ASSETS 7,000 TOTAL CLAIMS 7,000 Additional information:- i) Sales in 2020 was RM 12 million and it is projected to increase to 18 million in 2021. ii) The company is operating at full capacity. iii) The net profit for this company in 2020 was RM1,200,000 and dividend payment was RM300,000. iv) All external financing will be absorbed and met by common stock. Prepare a pro-forma balance sheet for Summerfields Sdn Bhd for the year ended 2021 by using percent of sales method and determine the external funds required.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Summerfields Sdn Bhd
Balance Sheet as at 31 December 2020 (RM’000)
Cash 400 Account payable 1,200
Marketable securities 500 Accrued wages 1,200
Accounts receivable 750 Notes payable 700
Inventories 500 Mortgage payable 2,200
Net Fixed Asset 4,850 Common stock 500
Retained earnings 1,200
TOTAL ASSETS 7,000 TOTAL CLAIMS 7,000
Additional information:-
i) Sales in 2020 was RM 12 million and it is projected to increase to 18 million in 2021.
ii) The company is operating at full capacity.
iii) The net profit for this company in 2020 was RM1,200,000 and dividend payment was
RM300,000.
iv) All external financing will be absorbed and met by common stock.
Prepare a pro-forma balance sheet for Summerfields Sdn Bhd for the year ended 2021
by using percent of sales method and determine the external funds required.

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