Question

Desh Bondhu Polymer Co. prepare a financial plan. Use the financial statements and the other information provided in what follows lo prepare the financial plan

Desh Bondhu Polymer

Statement of Profit & Loss

‘000

Particulars	Actual figure of the year 2019	Initial forecast ( fort the year 2020)
Sales Revenue Less: Cost of Goods sold Gross profits Less: Operating expenses Less: Depriciation EBIT Less: Interest EBT Less: Taxes @ 40% Net income     Less: Cash Dividends To retained earnings	Tk 15,000 11,250 3,750 1,250 300 Tk. 2,200 384 1,816 726.4 1,089.6 435.84 Tk. 653.76	Tk. 18,000 13,500 4,500 1,500 360 2.640 384 2,256 902.4 1,353.6 541.44 812.16

Desh Bondhu Polymer

Statement of financial Position as on December 31, 2019

Assets	Amount (‘000)	Liabilities and owners Equity	Amount (‘000)
Cash Marketable securities Accounts receivables Inventories Total current assets Net fixed assets Total assets	Tk 150 800 1,000 2.700 Tk. 4,650 3.800 Tk 8.450	Accounts payable Taxes payable Notes Payable (6%) Total current liabilities Long-term bonds (12%) Common slock Retained earnings Total liabilities and equity	Tk 600 300 400 Tk 1,300 3,000 1,300 2.850 Tk 8.450

The following financial information is also available:

176. The firm operated at full capacity in 2019. It expects sales to increase by 20% during 2020.
176. The firm wishes to maintain a minimum cash balance of Tk. 200,000.
176. The firm’s all types of assets, accounts payable and taxes payable will change directly in response to changes in sales in 2020.
176. Desh Bondhu Polymer Co. plans to raise the additional funds needed as follows:

Long-term bonds 60%, and Notes payable 40%.

Requirements:

i. List the above statements, and percentages of sales method to identify how much outside

Financing is required.

ii. According to stated structure, make the adjusted financial statements incorporating financing feedback.

Answer 1

Answer is given below