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Question 3 Andaman Cosmetics wishes to prepare pro forma balance sheet for 31 December 2012. The firm expects 2012 sales to a total of RM 3,000,000. The following information has been gathered: il A minimum cash balance of RM 50,000 is de s desired Marketable securities are expected to remain unchanged. Accounts receivable represents 10% of sales. Page 42 pic 3 Financial Planning and Forecasting iv. V vi. vi VE Inventories represent 12% of sales A new machine costing RM 20,000 will be acquired during the year 2012. Total depreciation for the year will be RM 32,000 Accounts payable represents 14% of sales. Accruals. Other Cument Liabilities. Long-Term Debt and Common Stock are expected to remain unchanged. The firm's net profit margin is 4% and it expects to pay out RM 70,000 in cash dividends during the year 2012. Balance Sheet as at 31 December 2011 Assets Inventories 340.000 Account receivables Marketable securities 15.000 45.000 Total Current Assets 655.000 Net Fixed Assets 600.000 Total Assets 1.255.000 255.000 Cash Liabilifes and Equities Account payable Accruals Other current liabilities Total Current Liabilities Long-Term Debt Common stock Retained earnings Total liabilities and stockholder's equity 395.000 60.000 30.000 485.000 350.000 200.000 220.000 1.255.000

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