Subject name: Financial Management

Question 2 (20 marks) Amanda Black and her team members are well known musicians who bring an element of fun into the enjoyment of music. They are famous throughout the world their music. Africa Lean Consulting. is considering sponsoring a concert in Benoni to promote the music and increase their sales in the process. The cost of the sponsorship will be R0.5 million. The concert is scheduled to be held in Spring 2022 in a reputable venue. Africa Lean Consulting has approached your company for a loan for these funds. Assuming that the Balance Sheet would continue to remain the same as the current published accounts for the year ended 31 August 2021, till Spring 2022, until the proposed loan is granted, calculate the gearing of the company and comment on this and all other findings particularly on the qualifications of the audit report. TIPS: The following gearing ratios should be correctly calculated. Question 2 (20 marks) Amanda Black and her team members are well known musicians who bring an element of fun into the enjoyment of music. They are famous throughout the world their music. Africa Lean Consulting. is considering sponsoring a concert in Benoni to promote the music and increase their sales in the process. The cost of the sponsorship will be R0.5 million. The concert is scheduled to be held in Spring 2022 in a reputable venue. Africa Lean Consulting has approached your company for a loan for these funds. Assuming that the Balance Sheet would continue to remain the same as the current published accounts for the year ended 31 August 2021, till Spring 2022, until the proposed loan is granted, calculate the gearing of the company and comment on this and all other findings particularly on the qualifications of the audit report. TIPS: The following gearing ratios should be correctly calculated