The most recent balance sheet of Karki furnishing (Pvt.) ltd is given below: Balance Sheet as of December 31, 2021 balance sheet (in million Rs) CashRs 100Account payableRs 100Account…

The most recent balance sheet of Karki furnishing (Pvt.) ltd is given below: Balance Sheet as of December 31, 2021 balance sheet (in million Rs) CashRs 100Account payableRs 100Account receivable300Notes payable50Inventory300Accruals50Net fixed assets500Long term debt400Common stock300Retained earnings300Total assets1,200Total liabilities and equities1,200 Sales are forecasted to increase from Rs 2,000 million in 2021 to Rs 3,000 million in 2022. The firm's fixed assets were used at full of capacity during 2021, but its current assets were at their proper levels. The Firm's after-tax profit margin is forecasted to be 10 percent, and its payout ratio will be 60 percent. a. What is the firm's additional funds needed (AFN) for the year 2022 b. Prepare Pro forma balance sheet for the firm for the year 2022.

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