Preliminary Calculations:
Sales growth rate = (330,000 - 300,000) / 300,000 = 10%
Percent of sales calculations:
- Cost of sales: 195,000 / 300,000 = 65%
- Selling expenses: 40,000 / 300,000 = 13.33%
- General and admin expenses: 11,000 / 300,000 = 3.67%
- Interest: 12,000 / 300,000 = 4%
Pro Forma Statement of Comprehensive Income for year ended 31 Dec 2021:
| Item | Amount (R) |
|------|------------|
| Sales revenue | 330,000 |
| Cost of sales (65%) | 214,500 |
| Gross profit | 115,500 |
| Selling expenses (13.33%) | 44,000 |
| General and admin expenses (3.67%) | 12,100 |
| Depreciation | 15,000 |
| Total operating expenses | 71,100 |
| Profit before interest and taxes | 44,400 |
| Interest paid (4%) | 13,200 |
| Profit before taxes | 31,200 |
| Taxes (28%) | 8,736 |
| Profit after taxes | 22,464 |
Pro Forma Statement of Financial Position as at 31 Dec 2021:
| Assets | Amount (R) | Liabilities & Equity | Amount (R) |
|--------|------------|----------------------|------------|
| Cash | 1,650 | Accounts payable (15%) | 49,500 |
| Accounts receivable (20%) | 66,000 | Long-term debt | ? |
| Inventory (32%) | 105,600 | | |
| Fixed assets | ? | Common stock | ? |
| | | Retained earnings | ? |
| Total assets | ? | Total liabilities & equity | ? |
External financing required:
Total assets - (Accounts payable + Long-term debt + Common stock + Retained earnings)
The external financing required cannot be fully determined without additional information on the opening balances for fixed assets, long-term debt, common stock, and retained earnings. However, based on the given information and projections, it appears the company will likely need some external financing to support its growth, particularly to fund the increase in working capital (accounts receivable and inventory) and the planned fixed asset outlays.
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