Reference no: EM13906614

The benefit and misfortune record and monetary record for the years 2006 and 2007 of Brilliant Corporation are as under. For the year 2008 , the accompanying are the planned figures. 

Deals 3000 

General and Administration costs 150 

Deterioration 100 

Non working surplus 80 

Profit 50 

Speculations 110 

Pre-paid costs 80 

Unsecured bank borrowings 100 

There will be no adjustment in the levels of offer capital, secured bank borrowings and incidental use and misfortunes. Every single other figure both in the proforma benefit furthermore, misfortune account and monetary record, will change in extent to the normal its extent to offers of that year for as long as two years. It is additionally accepted that any additional stores expected to accomplish the wanted money related position for 2008 will be raised by method for debentures. Set up the proforma money related proclamations for the year 2008 utilizing the exceed expectations model given as a part of the content.

Year 2006 2007 Net sales 2300 2,700 Cost of goods sold 1760 2000 Gross profit 540 700 Selling expenses 150 180 General and administration expenses 120 124 Depreciation 94 84 Operating profit 176 312 Non-operating surplus deficit 12 10 Earnings before interest and tax 188 322 Interest 30 38 Earnings before tax 158 284 Tax 56 96 Earnings after tax 102 188 Dividends(given) 35 35 Retained earnings 67 153 Year Balance Sheets 2006 2007 Fixed assets (net 1460 1520 Investments 75 90 Current assets, loans and advances · Cash and bank 61 58 · Receivables 438 510 · Inventories 620 710 · Pre-paid expenses 78 84

Miscellaneous expenditures & losses 38 42 Total 2770 3014 Liabilities Share capital Equity 540 540 Preference 80 80 Reserves and surplus 460 527 Secured loans Debentures 690 642 Bank borrowings 580 625 Unsecured loans Bank borrowings 120 200 Current liabilities and provision Trade creditors 200 320 Provisions 100 80 Total 2770 3014