Eff Date: 09-08-2023 QP-ASR-001 | Rev 001 QUESTION 2 The Directors of Botho University (Pty) Ltd is thinking of bidding for Enko-Botho (Pty) Ltd. Both these entities are private entities in the education sector in Botswana and thus are not listed companies. In preparation for the bid, the Directors have obtained the following financial details relating to Enko-Botho (Pty). Enko-Botho (Pty) Latest Statement of profit and loss extracts BWP 4,555,000 (1.260.000) 3,295,000 Sales Cost of sales Gross profit Overheads. Net profit Tax Net profit after tax Enko-Botho (Pty) Latest Statement of Financial Position extracts BWP Non-Current Assets Property Machinery Vehicles Current assets Trade debtors Stock Cash Total Assets Equity & liabilities Equity Ordinary Shares (P1 par) Reserves Current liabilities Trade creditors Short-term loan. Long-term liabilities: 6% debentures 3,546,000 Total Liabilities Total Equity & liabilities Year Cash flows. (1.450.000) 1,845,000 (553.500) 1.291.500 P400,000 P450,000 2,825,000 800,000