Question
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
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
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