Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
QUESTION 3 (25 MARKSI) Todoy is 24 April 2015. Samson (Pty) Lid is a South Afrcan company that manulactures specialsed computer parts for sale throughout
QUESTION 3 (25 MARKSI) Todoy is 24 April 2015. Samson (Pty) Lid is a South Afrcan company that manulactures specialsed computer parts for sale throughout Africa and has experienced mpid growth in recent years. Much of this growth has been as a revift of launching new products Desplte rapidly increasing revenues. Samen has experienced liquidity pressures as evidenced by a growing overdraft. Samson is now dangerously close to breaching its overdrafh limit of R9.0 milion. Extracts from management accourting infomation for Samaon for the 12 months of trading up in 31 Mainh 2015 ane nivan halne The drectors proposed to declare a scrip efvidend for the current year apposed to a cash dividend in order to ease the pressure on the current cash flow situation. For the purposes of this question, taxation should be ignored. REQUIRED 3.1 Caloulate what the overdrat requirement would have been on 31 March 2015 if working captal days for the period had remained at 30 September 2014 levels. (5) 3.2 Explain the particular pressures taced by conpanies in times of rapid expansion in respect of working capital and profit margins. Iltustrabe your answar with reference to Samson. (8) [12] Clearfy show all your calculations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started