BraK Ltd. had sales of R10m last year and expects sales of R15m this year. All

assets and liabilities move spontaneously in proportion to its sales. The company

had assets of R50m with unused capacity of 10% that it can first utilise, liabilities

of R30m and a net profit margin of 30%. The company maintains a retention ratio

of 50%. Using the percentage of sales method, determine the funding

requirements for Barrion Ltd. for the coming year.

A. R2.25m

B. R2.75m

C. R3.00m

D. R3.25m

A company took to linear regression analysis to estimate their sales for the

coming year. Based on past sales, the company obtained the following equation

in the format Y = a +bX: Y = 0.5x + 20 (units in millions). If the equation was for

the 10th period in the series, what would the estimate be for the coming year

(period 11)?

A. R19.5 million

B. R20.0 million

C. R25.0 million

D. R25.5 million

With reference to the information given in question 7, calculate the change in bad

debts (ignore the direction) from the old to the new policy and choose the most

correct option.

A. R50 000

B. R100 000

C. R250 000

D. R300 000