Question: QuartSite Ltd. had sales of R10m last year and expects sales of R15m this year. All assets and liabilities move spontaneously in proportion to its

QuartSite 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, liabilities of R30m and a net profit margin of 30%.

The company does not pay dividends at this time. Using the percentage of sales

method, determine the funding requirements for Quarsite Ltd. for the coming

year.

A. R1.5m

B. R2.5m

C. R5.5m

D. R7.5m

Barrion 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, 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. R7.75m

B. R15.50m

C. R25.00m

D. R37.25m

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