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Example on seasonal fluctuations - solution

The document outlines the financial position of Monte Manufacturing for April and July, detailing current and non-current assets, liabilities, and owner's equity. It highlights maximum temporary and permanent assets, as well as the breakdown of current liabilities and financing options. The figures indicate a significant increase in total assets and current liabilities from April to July.

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Thanousha Abrahams
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6 views

Example on seasonal fluctuations - solution

The document outlines the financial position of Monte Manufacturing for April and July, detailing current and non-current assets, liabilities, and owner's equity. It highlights maximum temporary and permanent assets, as well as the breakdown of current liabilities and financing options. The figures indicate a significant increase in total assets and current liabilities from April to July.

Uploaded by

Thanousha Abrahams
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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QUESTION 11.

24 MONTE MANUFACUTRING
April/Oct July
Rm Rm
Current assets R80 R250
Non-current assets R300 R300
Total assets R380 R550

Current liabilities R50 R220


Non-current liabilities R180 R150
Owner's Equity R150 R180
Total liabilities and owner's equity R380 R550
Rm
a) Maximum temporary assets R170
Maximum permanent assets R380

b) Permanent current assets R80


Permanent spontaneous current liabilities R40

c) Permanent financing R230


Permanent current liabilities R50
Permanent long-term liabilites R180

d) Current liabilities April July


Rm Rm
Permanent Spontaneous current liabilities R40 R40
Temporary Spontaneous current liabilities R85 CA*50% -R40
Permanent Short-term borrowings R10 R10
Temporary Short-term borrowings R85
Total current liabilities R50 R220

e) Temporary financing April July


Rm Rm
Temporary spontaneous R85 125-40
Temporary short-term borrowing R85
Total temporary financing R170

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