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The balance sheet of Sibasa Fruit Processing is as follows: Liabilities Assets Share Capital 25 000 Fixed Assets 30 000 Retained Earnings 12 000 Investments

The balance sheet of Sibasa Fruit Processing is as follows: Liabilities Assets Share Capital 25 000 Fixed Assets 30 000 Retained Earnings 12 000 Investments 8 000 Long-term Loan 17000 Stock 16 000 Trade Creditors 22 000 Trade Debtors 20 000 Overdraft 0 Other Debtors 5 000 Accruals and Other 9 000 Cash 6 000 Total 85 000 Total 85 000 1.1 Discuss the working capital requirements. (9) 1.2 What is your view on the liquidity of Sibasa Fruit Processing? (7) 1.3 What would the working capital situation be if Sibasa Fruit Processing doubled its sales, without a change in the current terms of trade? (4)

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