Determine the funding requirements for barrion ltd

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Barrion Ltd. had sales of R10m last year and expects sales of R15m this year. All assets and liabilities move spontaneously in proportion to its sales. The company had assets of R50m, liabilities of R30m and a net profit margin of 30%. The company maintains a retention ratio of 50%. Using the percentage of sales method, determine the funding requirements for Barrion Ltd. for the coming year.

Reference no: EM132596542

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