Question 2
Working for income statement:
Components
Net Sales
Gross Profit Margin
Cost of Goods Sold
Selling, general, and
administrative expenses
Depreciation and amortization
expenses
Interest expenses
Income tax expenses
Working for statement of financial position:
Components
Receivables
Inventories
Other current assets
Property, Plant and Equipment
Accumulated Depreciation
Net Property, Plant and
Equipment
Other non-current assets
Account payables and accrued
liabilities
Short-term debt and current
maturities of LT debt
Income tax payable
Deferred income tax and
liabilities
Long-term debt
Common stock
Capital surplus
Retained Earning
Treasury stock
Computation
RM47,716 x 1.1827 = RM56,434
RM56,434 x 39.27% = RM22,162
RM56,434 – RM22,162 = RM34,272
RM56,434 x 13.69% = RM7,726
RM18,956 x 8.76% = RM1,661
RM4,799 x 4.94% = RM237
RM12,538 x 30% = RM3,761
Computation
RM56,434/9.15 = RM6,168
RM34,272/8.1 = RM4,231
No change
RM18,956 + (RM56,434 x 9.04%) = RM24,058
RM5,853 + RM1,661 = RM7,514
RM24,058 – RM7,514 = RM16,544
No change
RM34,272/4.91 = RM6,980
No change
RM3,761 x 50.41% = RM1,896
No change
No change
No change
No change
RM31,500 + RM8,777 – (RM1.06 x 2,976) = RM37,122
No change
 Projected Income Statement
RM’000 RM’000
Net Sales 56,434
Cost of goods sold (34,272)
Gross Profit 22,162
Selling, general, and administrative expenses (7,726)
Depreciation and amortization expenses (1,661)
Interest expenses (237)
Income before tax 12,538
Income tax expense (30%) (3,761)
Net Income 8,777
Outstanding shares 2,976

Projected Balance Sheet

RM’000 RM’000
Cash 5,263
Receivables 6,168
Inventories 4,231
Other current assets 880
Total current assets 16,542
Property, Plant and Equipment 24,058
Accumulated Depreciation (7,514)
Net Property, Plant and Equipment 16,544
Other Non-Current Assets 17,942
Total Assets 51,028

Account payables and accrued liabilities 6,980

Short-term debt and current maturity of LT debt 4,067
Income tax payable 1,896
Total current liabilities 12,943

Deferred income tax and liabilities 11,614

Long-term debt 4,799
Total non-current liabilities 16,413

Common Stock 30
Capital Surplus 6,907
Retained earnings 37,122
Treasury stock (22,387)
Shareholders’ equity 21,672
Total liabilities and equity 51,028
 Statement of Cash Flow
RM’000
Net Income 8,777
Items to adjust income to cash flow
Depreciation and amortization 1,661
Receivables (953)
Inventories (652)
Account payables 1,076
Income tax and others 323
Net Cash Flow from operation 10,232

Capital Expenditure (5,102)

Net cash flow from investing activities (5,102)

Long-term debt 0
Dividends (3,155)
Net cash flow from financing activities (3,155)
Net change in cash 1,975
Beginning Cash 3,287
Ending Cash 5,262