Statement of Financial Position of Rose Plc as at 31/12/2020 'M 'M 50 Non-current assets Current assets Cash and cash equivalents Other current assets 4 16 20 70 Total assets 15 Equity and reserves Ordinary shares Reserves 29 44 6 Non-current liabilities 6% Preference shares 8% loan notes Bank loan 8 19 7 Current liabilities Total equity and liabilities Investment in facilities Rose plc's board is looking to finance investments in facilities over the next three years, forecast to cost up to 27m. The board does not wish to obtain further long-term debt finance and is also unwilling to make an equity issue. This means that investments have to be financed from cash which can be made available internally by using the profits. Board members have made a number of suggestions about how this can be done: Director A (Andrew) has suggested that the company does not have a problem with funding new investments, as it has cash available in the reserves of 29m. If extra cash is required soon, Rose plc could reduce its investment in working capital and use the money they have put aside for the day-to-day activities of the business. Director B (Brian) has suggested borrowing 10m or raising 10m in shares and also use 17m of their cash to pay the investment and pay 2m in a dividend. Director C (Colin) has commented that although a high dividend has just been paid, dividends could be reduced over the next three years, allowing spare cash for investment. Colin would prefer not to eliminate all the cash of the business as this is needed for day-to- day activities and his concern is it will cause liquidity issues. He is concerned not paying a dividend might have an impact on the market value of the shares once announced.