The CFO of AkH sp. z 0.0. is developing a financial plan for the company for the year 2022. They would like to check if the strategy, planned for year 2022, is financially viable. According to their calculations, the forecasted financial data for the year 2022 is as follows (all data given in thousands and represent the projected changes between the beginning and end of 2022): a. Revenues = 2,000 b. Operating costs (excluding depreciation) = 1,400 c. Depreciation = 100 d. Other operating costs = 100 e. Financial costs = 50 f. Opening receivables balance = 100, final balance = 200 g. Opening inventory balance = 300, final balance = 500 h. Opening account payables balance = 300, final account payables balance = 500 a. Opening cash balance = 200 j. Credit payment = 100 k. Proceeds from new issuance of shares = 100 ax. Investment expenditure = 300 We also know that the company pays a 19% income tax. a. Based on the given information, please develop a cash flow statement and decide if the strategy planned for the nearest year is financially viable. Will the company's resources be sufficient to implement the strategy? Or will the company need to get additional funding from external sources (debt or equity)? b. If your calculations indicate that the company will need additional funding, assume that it will be obtained by taking an additional loan with the following parameters: interest rate – 7% per annum, maturity: 5 years, repayment: quarterly.
The CFO of AkH sp. z 0.0. is developing a financial plan for the company for the year 2022. They would like to check if the strategy, planned for year 2022, is financially viable. According to their calculations, the forecasted financial data for the year 2022 is as follows (all data given in thousands and represent the projected changes between the beginning and end of 2022): a. Revenues = 2,000 b. Operating costs (excluding depreciation) = 1,400 c. Depreciation = 100 d. Other operating costs = 100 e. Financial costs = 50 f. Opening receivables balance = 100, final balance = 200 g. Opening inventory balance = 300, final balance = 500 h. Opening account payables balance = 300, final account payables balance = 500 a. Opening cash balance = 200 j. Credit payment = 100 k. Proceeds from new issuance of shares = 100 ax. Investment expenditure = 300 We also know that the company pays a 19% income tax. a. Based on the given information, please develop a cash flow statement and decide if the strategy planned for the nearest year is financially viable. Will the company's resources be sufficient to implement the strategy? Or will the company need to get additional funding from external sources (debt or equity)? b. If your calculations indicate that the company will need additional funding, assume that it will be obtained by taking an additional loan with the following parameters: interest rate – 7% per annum, maturity: 5 years, repayment: quarterly.
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 7P
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Transcribed Image Text:The CFO of AkH sp. z 0.0. is developing a financial plan for the company for the year 2022.
They would like to check if the strategy, planned for year 2022, is financially viable. According to their
calculations, the forecasted financial data for the year 2022 is as follows (all data given in thousands and
represent the projected changes between the beginning and end of 2022):
a. Revenues = 2,000
b. Operating costs (excluding depreciation) = 1,400
c. Depreciation = 100
d. Other operating costs = 100
e. Financial costs = 50
f. Opening receivables balance = 100, final balance = 200
g. Opening inventory balance = 300, final balance = 500
h. Opening account payables balance = 300, final account payables balance = 500
a. Opening cash balance = 200
j. Credit payment = 100
k. Proceeds from new issuance of shares = 100
ax. Investment expenditure = 300
%3D
%3D
We also know that the company pays a 19% income tax.
a. Based on the given information, please develop a cash flow statement and decide if the strategy planned for
the nearest year is financially viable. Will the company's resources be sufficient to implement the strategy?
Or will the company need to get additional funding from external sources (debt or equity)?
b. If your calculations indicate that the company will need additional funding, assume that it will be obtained by
taking an additional loan with the following parameters: interest rate - 7% per annum, maturity: 5 years,
repayment: quarterly.
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