Written by students who passed Immediately available after payment Read online or as PDF Wrong document? Swap it for free 4,6 TrustPilot
logo-home
Document preview thumbnail
Preview 2 out of 16 pages
Exam (elaborations)

RSK4804 Assignment 2 Semester 2 2026 - Due 28 August 2026

Document preview thumbnail
Preview 2 out of 16 pages

RSK4804 Assignment 2 Semester 2 2026 - Due 28 August 2026 QUESTION 1 [10] The balance sheet of Sedibelo Enterprises is as follows: - Liabilities Assets Share capital 24 000 Fixed assets 25 000 Retained earnings 13 000 Investments 9 000 Long-term loan 18 000 Stock 16 000 Trade creditors 22 000 Trade debtors 19 000 Overdraft 0 Other debtors 6 000 Accruals and others 8 000 Cash 10 000 Total 85 000 Total 85 000 1.1 Discuss the working capital requirements. (10) QUESTION 2 [15] 2.1 Do you agree that credit be granted against security, with the knowledge that the same security might be relied upon later to recover debt? Elaborate. (2) 2.2 If you were a lender, which form of security would you prefer? Please explain. (4) 2.3 Bank of Limpopo has a risk-adjusted return on capital (RAROC) hurdle rate of 17% on all lending deals. The amount lent to Khensani Mango Estates is R30m. The

Content preview

RSK4804
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

Document information

Uploaded on
March 13, 2026
File latest updated on
July 28, 2026
Number of pages
16
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers
R75,00
Purchased by 18 students

Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF

Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
Unisian
4,3
(653)
Sold
5580
Followers
1438
Items
851
Last sold
2 hours ago

Reviews from verified buyers



Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can immediately select a different document that better matches what you need.

Pay how you prefer, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card or EFT and download your PDF document instantly.

Student with book image

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Working on your references?

Frequently asked questions