The accountant of ABC manufacturing company ltd required a loan to finance current assets and repay a bank overdraft. it is intended that the loan be repaid in one year. the bank is provided with the following financial statement which accompanied the loan request.

ABC MANUFACTURING COMPANY

BALANCE SHEET

AS AT 31 MARCH

2019 2018

Cash 10,000 750

Account receivable 12,750 17,200

Inventory 31,200 46,250

Total current assets 53,950 64,200

Land 22,500 27,120

Plant & Equipment 71,250 100,000

Less accumulated depreciation (31,200) (32,200)

Total fixed assets 62,550 94,920 116,500 159,120

Account payable 11,500 24,000

Bank overdraft 18,250 49,500

Total current liabilities 29,750 73,500

Total current liabilities 33,700 27,500

team loan 53,050 58,120

shareholder funds 116,500 159,120

The accountant of ABC Manufacturing company ltd requires a loan to finance current assets and repay a bank overdraft. it is intended that the loan be repaid in one year. The bank is provided with the following financial statement which accompanied the loan request.

ABC Manufacturing Company Balance Sheet as at 31 March

2019. 2018 cash. 10,000. 750 account receivable. 12,750. 17,200 inventory. 31,200. 46,250 total current assets. 53,950. 64,200 land 22,500. 27,120 plant & equipment. 71,250. 100,000 less accumulated dep. (31,200). (32,200) total fixed assets. 62,550 94,920 116,500. 159,120

account payable. 11,500. 24,000 Bank overdraft. 18,250. 49,500 Total current liability. 29,750. 73,500 term loan. 33,700. 27,500 shareholder fund. 55,050. 58,120 116,500. 159,120