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Balance Sheet December 31, 2021 In 2021, Lima Ltd. had total sales of $120 million. The company's net profit for 2021 was $6 million and
Balance Sheet December 31, 2021 In 2021, Lima Ltd. had total sales of $120 million. The company's net profit for 2021 was $6 million and $3 million was paid out as dividends. The company is currently operating below full capacity and is considering a 10% increase in sales during 2022. Required: a. Advise Lima on the amount of new funding that would be required in order to achieve the 10% increase in sales during 2022 . (6) marks) c. Advise Lima Ltd. on two alternatives available to the company in the event that they are not able to raise all the funds required by way of a bond issue. (2 marks) Balance Sheet December 31, 2021 In 2021, Lima Ltd. had total sales of $120 million. The company's net profit for 2021 was $6 million and $3 million was paid out as dividends. The company is currently operating below full capacity and is considering a 10% increase in sales during 2022. Required: a. Advise Lima on the amount of new funding that would be required in order to achieve the 10% increase in sales during 2022 . (6) marks) c. Advise Lima Ltd. on two alternatives available to the company in the event that they are not able to raise all the funds required by way of a bond issue. (2 marks)
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