ASSIGNMENT 2
DUE DATE: 28 AUGUST 2026
, RSK4804 ASSIGNMENT 2 2026
DUE 28 AUGUST 2026
QUESTION 1: The balance sheet of Sedibelo Enterprises is as follows:
1.1 Discussion of Working Capital Requirements
Identify Current Assets and Current Liabilities from the Balance Sheet
Current Assets Amount (R'000) Current Liabilities Amount (R'000)
Stock 16,000 Trade creditors 22,000
Trade debtors 19,000 Accruals and others 8,000
Other debtors 6,000 Overdraft 0
Cash 10,000
Total Current Assets 51,000 Total Current Liabilities 30,000
The Working Capital Gap (from the finance manager's perspective)
Working Capital Gap = Current Assets - Current Liabilities
= 51,000 - 30,000
= R21,000
At any time during the period, the company needs R51,000 in current assets. The
company can manage trade credit and other creditors of R30,000, meaning current
assets are partly financed by current liabilities. This leaves a gap of R21,000 that must
be financed from long-term sources.
Working Capital from the Bank's Perspective