Koshi Company's balance sheet is given below: Balance Sheet as of December 31, 2024CashRs. 100,000Accounts payableRs. 50,000Account receivable200,000Accruals150,000Inventory100,000Total current…

Koshi Company's balance sheet is given below:

Balance Sheet as of December 31, 2024CashRs. 100,000Accounts payableRs. 50,000Account receivable200,000Accruals150,000Inventory100,000Total current assetsRs. 400,000Total current liabilitiesRs. 200,000Net fixed assets600,000Common stock500,000Retained earnings300,000Total assetsRs. 1,000,000Total liabilities and equityRs. 1,000,000 Sales are expected to increase from Rs 2,000,000 in 2024 to Rs3,000,000 in 2025. Firm's after-tax profit margin is forecasted to be 10 percent and its payout ratio will be 80 percent.

a. What is the firm's additional fund needed for the year 2025 if company is running at full capacity? Use AFN equation. b. Prepare Koshi Company's pro-forma balance sheet of as of December 31, 2025.