The following information was extracted from the accounting records of Karibu Ltd. As at 31 December 2008.

      

The following information was extracted from the accounting records of Karibu Ltd. As at 31 December 2008.
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Sales revenue for the year ending 31 December 2009 is expected to increase by 25% . Total assets
and accounts payable are proportional to sales and that relationship will be maintained in future.
The company raised sh. 150 million by floating new ordinary shares on 1 January 2009. The
company’s profit margin on sales is 6 percent. 60 per cent of the earnings attributable to ordinary
shareholders will be paid out as dividends.
Required:
i) Total debt for Karibu Ltd. as at 31 December 2008.
ii) The new long term – debt financing that will be needed in the year 2009.

  

Answers


Kavungya
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Kavungya answered the question on March 30, 2022 at 08:24


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