{"id":5711,"date":"2020-06-03T20:32:02","date_gmt":"2020-06-03T10:32:02","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=5711"},"modified":"2020-06-03T20:32:02","modified_gmt":"2020-06-03T10:32:02","slug":"financial-management-case-study-material-pre-seen-case-study-answers","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/financial-management-case-study-material-pre-seen-case-study-answers\/","title":{"rendered":"Financial Management Case Study Material – Pre-seen Case Study Answers"},"content":{"rendered":"

Final Case Study -Pre-seen Case Study<\/strong><\/h2>\n
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Looking for\u00a0Financial Management Case Study Material – Pre-seen Case Study Answers<\/strong><\/a>? Get Case Study Answers on\u00a0Financial Management\u00a0Pre-seen Material). We Provide Financial Management\u00a0Assignment Answers<\/strong><\/a>,\u00a0Management Case Study Assignment Writing<\/strong><\/a> & MBA Finance Assignment Help<\/strong><\/a> from Masters and PhD Expert at affordable price? Acquire HD Quality research work with 100% Plagiarism free content.<\/p>\n<\/blockquote>\n

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Pre-seen Material Details:<\/strong><\/p>\n

Topic: <\/strong>Financial Management<\/p>\n

Pages\/Words: <\/strong>1 Page\/250 Words<\/p>\n

 <\/p>\n

Introduction<\/strong><\/p>\n

The Royal ltd<\/strong> is a publisher of a daily newspapers based in Gauteng<\/strong>, <\/strong>South Africa<\/strong>. It also provides web Media to the world wide audience. It has been listed on the Johannesburg stock exchange since 1994. The Royal has three distinct divisions, that is, the Newspapers, Advertising and the web divisions. The divisions are discussed below as follows:<\/p>\n

The Newspaper division<\/strong><\/p>\n

This division has two printing sites and three offices. The royal publishes one Sunday Newspaper and three daily Newspapers in South Africa. The three offices edit the Sunday Newspaper and the three daily Newspapers. The Advertising division owns two subsidiary companies namely; Chronicle<\/strong> and Herald<\/strong>.\u00a0 Chronicle<\/strong> and Herald<\/strong> are involved in publishing. Chronicle is based in Botswana within the SADC region and Herald is based in Ghana which is outside the SADC region. All printing for the division\u2019s publications is done at the two printing sites, except for the publications produced by Chronicle<\/strong> and Herald<\/strong>. The two subsidiaries have their own printing sites.<\/p>\n

The Web division<\/strong><\/p>\n

This division owns 200 websites which it maintains and develops. The development and maintenance of web material has become an important part of the business for \u201cThe Royal ltd<\/strong>\u201d. During the past 10 years the division developed online versions of all the newspapers produced by the Newspaper division. Some websites are more popular than others. This is measured by the number of hits they receive<\/p>\n

The Advertising Division<\/strong><\/p>\n

This division handles the sale of advertising space for the whole company (The Royal ltd). That is, the advertisements that appear in the print media and web pages produced by the Newspaper division and the web division are all handled by the Advertising division.<\/p>\n

Headquarters of the Group<\/strong><\/p>\n

The Royal ltd has a head office that is based in Sandton. This is in addition to the three operating divisions that it has.\u00a0 The board of directors sits at the head office in Sandton. The headquarters deal with the group\u2019s corporate affairs.\u00a0 The headquarters also administers and develops the group\u2019s policies and procedures.<\/p>\n

Mission statement<\/strong><\/p>\n

In 2015, The Royal established the following mission statement \u201cTo be the leading news media organization in Africa that provides quality reporting and information on African and World-wide news\u201d.<\/p>\n

The strategic objectives<\/strong><\/p>\n

In 2015 the board of directors established the following objectives:<\/p>\n

    \n
  1. To provide reliable and well informed news that meets the needs of the readers<\/li>\n
  2. To reach as many potential website and Newspapers as possible<\/li>\n
  3. To increase advertising income so that the group moves\u00a0 towards offering as many news titles as \u00a0possible free of charge to the public<\/li>\n<\/ol>\n

    Financial Objectives<\/strong><\/p>\n

      \n
    1. Revenue and operating income to grow by 4% per year<\/li>\n
    2. To have a steady growth in dividends per share<\/li>\n
    3. To maintain a gearing below 40%<\/li>\n<\/ol>\n

      Forecast revenue and operating profit<\/strong><\/p>\n

      Year ended\u00a0\u00a0 31 December 2021<\/span><\/strong><\/p>\n

      Forecast revenue\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R2\u00a0800 000\u00a0000<\/p>\n

      Forecast operating income\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 730\u00a0000 000<\/p>\n

      The figures were extracted from the forecast income statement for the year ended 31 December 2021<\/p>\n

      Divisional performance information<\/strong><\/p>\n

      The following financial information is available for each division for the past three years:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      The Newspaper Division<\/strong><\/td>\nYear ended<\/strong><\/td>\nYear ended<\/strong><\/td>\nForecasted<\/strong><\/td>\n<\/tr>\n
      <\/td>\n31-12-19<\/td>\n31-12-20<\/td>\n31-12-21<\/td>\n<\/tr>\n
      External Revenue<\/td>\nR910\u00a0000\u00a0000<\/td>\nR940\u00a0000 000<\/td>\nR940\u00a0000 000<\/td>\n<\/tr>\n
      Revenue from internal transfers<\/td>\nR 900\u00a0000\u00a0000<\/td>\nR 910\u00a0000\u00a0000<\/td>\nR960\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Net operating income<\/td>\nR 450\u00a0000\u00a0000<\/td>\nR 460\u00a0000\u00a0000<\/td>\nR480\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Fixed assets<\/td>\nR4\u00a0200\u00a0000\u00a0000<\/td>\nR4\u00a0900\u00a0000\u00a0000<\/td>\nR 5\u00a0480\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Current Assets<\/td>\nR 40\u00a0000\u00a0000<\/td>\nR 80\u00a0000\u00a0000<\/td>\n(R10\u00a0000\u00a0000)<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      The Web Division<\/strong><\/td>\nYear ended<\/strong><\/td>\nYear ended<\/strong><\/td>\nForecasted<\/strong><\/td>\n<\/tr>\n
      <\/td>\n31-12-19<\/td>\n31-12-20<\/td>\n31-12-21<\/td>\n<\/tr>\n
      Internal transfers<\/td>\nR 550\u00a0000\u00a0000<\/td>\nR 600\u00a0000\u00a0000<\/td>\nR660\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Net operating income<\/td>\nR 100\u00a0000\u00a0000<\/td>\nR 130\u00a0000\u00a0000<\/td>\nR160\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Fixed assets<\/td>\nR370\u00a0000\u00a0000<\/td>\nR400\u00a0000\u00a0000<\/td>\nR 430\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Current Assets<\/td>\nR 10\u00a0000\u00a0000<\/td>\nR 10\u00a0000\u00a0000<\/td>\n(R20\u00a0000\u00a0000)<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      The Advertising Division<\/strong><\/td>\nYear ended<\/strong><\/td>\nYear ended<\/strong><\/td>\nForecasted<\/strong><\/td>\n<\/tr>\n
      <\/td>\n31-12-19<\/td>\n31-12-20<\/td>\n31-12-21<\/td>\n<\/tr>\n
      External Revenue<\/td>\nR162\u00a0000\u00a0000<\/td>\nR180\u00a0000 000<\/td>\nR186\u00a0000 000<\/td>\n<\/tr>\n
      Net operating income<\/td>\nR 100\u00a0000\u00a0000<\/td>\nR 180\u00a0000\u00a0000<\/td>\nR190\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Fixed assets<\/td>\nR30\u00a0000\u00a0000<\/td>\nR60\u00a0000\u00a0000<\/td>\nR 70\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Current Assets<\/td>\nR 10\u00a0000\u00a0000<\/td>\nR 10\u00a0000\u00a0000<\/td>\n(R20\u00a0000\u00a0000)<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      Head office<\/strong><\/td>\nYear ended<\/strong><\/td>\nYear ended<\/strong><\/td>\nForecasted<\/strong><\/td>\n<\/tr>\n
      <\/td>\n31-12-19<\/td>\n31-12-20<\/td>\n31-12-21<\/td>\n<\/tr>\n
      Net operating income<\/td>\nR 80\u00a0000\u00a0000<\/td>\nR 90\u00a0000\u00a0000<\/td>\nR100\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Fixed assets<\/td>\nR370\u00a0000\u00a0000<\/td>\nR390\u00a0000\u00a0000<\/td>\nR 430\u00a0000\u00a0000<\/td>\n<\/tr>\n
      Current Assets<\/td>\nR 10\u00a0000\u00a0000<\/td>\nR 10\u00a0000\u00a0000<\/td>\n(R10\u00a0000\u00a0000)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

       <\/p>\n

      Notes:<\/strong><\/p>\n

        \n
      1. The advertising division remits advertising revenue to both the Newspapers and the Web divisions<\/li>\n
      2. All of the web division\u2019s revenue comes from advertising<\/li>\n
      3. The newspaper division\u2019s revenue and operating income include those earned by Herald<\/strong> and Chronicle<\/strong>. The forecasted revenue for the year ending 31 December 2021 for Chronicle<\/strong> is R200\u00a0000\u00a0000 and for Herald is R40\u00a0000 000<\/li>\n<\/ol>\n

        Additional information:<\/strong><\/p>\n

        Newspapers Division<\/strong><\/p>\n

        Chronicle<\/strong> is a wholly owned subsidiary. It was acquired in 2015. The financial statements of Chronicle<\/strong> are translated into South African Rands. These are consolidated into Royal ltd group financial statements. The financial statements are included in the newspaper division\u2019s financial statements for the purposes of reporting.\u00a0 A month after chronicle was acquired by Royal ltd, it launched a weekly newspaper called the pan-African. It is produced in Botswana and distributed throughout Africa. The board believed that the newspaper would become popular as it provided weekly African news. However, sales have been disappointing.<\/p>\n

        Herald publishes local newspapers in Ghana. It is also part of the Newspapers division. It is 80% owned by the Newspaper division. It was purchases in 2013. Herald is very profitable. It is produced at low cost.<\/p>\n

        The journalists used by the Newspaper division incur very high costs to carry out their duties. These costs have risen significantly during the previous years.<\/p>\n

        There has been significant capital investment in the Newspaper division since 2016. The division has modernised the printing press. This has improved the quality of the output and efficiency of the printing process. The customers have indicated that they are very satisfied with the product. The increased mechanisation and efficiency has reduced costs. It has also led to the reduction in the number of employees operating in the printing press. Consequently, some staff in the division has expressed dissatisfaction.\u00a0 However, employees in other divisions have not been affected.<\/p>\n

        Web Division<\/strong><\/p>\n

        The revenues from the web division are generated through advertising. This is revenue is generated from sales of advertising space in the web pages by the Advertising Division. Currently, there is no charge to access the newspapers. \u00a0The newspapers are shorter versions of the printed newspapers. The comments from the public about the websites have been very positive. The division is currently undertaking a review of all its costs, particularly the costs relating to employees, website development.<\/p>\n

        Advertising Division<\/strong><\/p>\n

        This division pays advertising revenue to both the Newspaper division and the web division. The payment is done after the advertising division has deducted its commission from the advertising revenue. This division also offers advertising services to corporate clients. The advertising services include television and radio. The advertising division provides pop up advertising on websites.<\/p>\n

        Extracts from Royal ltd forecast group financial statements<\/strong><\/p>\n

        Group forecast Income statement for the year ending 31 December 2021<\/strong><\/p>\n

        Revenue\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 2\u00a0800\u00a0000\u00a0000<\/p>\n

        Operating costs\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 2\u00a0070\u00a0000\u00a0000<\/span><\/p>\n

        Net operating profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R\u00a0\u00a0\u00a0 730\u00a0000 000<\/p>\n

        Interest income\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R\u00a0\u00a0 10 000 000<\/p>\n

        Interest expense\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0(R110\u00a0000 000)<\/p>\n

        Taxation\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (R 190\u00a0000000)<\/span><\/p>\n

        Forecasted profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0R440\u00a0000\u00a0000<\/span><\/p>\n

         <\/p>\n

        Forecasted Balance Sheet (Statement of financial position) as at 31 December 2021<\/strong><\/p>\n

        Assets<\/strong><\/p>\n

        Fixed Assets\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R6 410\u00a0000 000<\/p>\n

        Current Assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/p>\n

        Inventory\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0R 20\u00a0000\u00a0000<\/p>\n

        Debtors\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R270\u00a0000\u00a0000<\/p>\n

        Cash and Cash equivalents\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0R20\u00a0000\u00a0000<\/span><\/p>\n

        Total Assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0R 6\u00a0720\u00a0000 000<\/span><\/p>\n

        \n

        Liabilities <\/strong><\/p>\n

        Long term liabilities\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R2\u00a0500\u00a0000\u00a0000<\/p>\n

        Current liabilities<\/strong><\/p>\n

        Payables\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R460\u00a0000 000<\/span><\/p>\n

        Total liabilities\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 6\u00a0720\u00a0000 000<\/span><\/p>\n

        \n

        Equity<\/strong><\/p>\n

        Share capital\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R1400 000\u00a0000<\/p>\n

        Share premium\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 350\u00a0000\u00a0000<\/p>\n

        Retained income\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 1\u00a0850\u00a0000\u00a0000<\/p>\n

        Non- controlling interest\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0R 160 000 000<\/span><\/p>\n

        Total equity\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 R 2\u00a0960\u00a0000 000<\/span><\/p>\n

        Notes:<\/strong><\/p>\n

          \n
        1. Assume taxation is 30%<\/li>\n
        2. Shares issued are 140 million at R1 each<\/li>\n
        3. The long term borrowing include R830\u00a0000\u00a0000 of loan capital which is due for repayment\u00a0 on 1 January 2022 and the remainder is due for repayment on 1 January 2029<\/li>\n<\/ol>\n

           <\/p>\n

           <\/p>\n

          Reference ID:\u00a0#getanswers2001266<\/span><\/strong><\/p>\n