Equity at the end of the coming financial year

Reference no: EM132958566

Question: Financial objectives as a starting point for the budget process ... A company must start its budget process. The company's financial goal is to have the same goal for a financial balance at the end of the financial year, as it was at the beginning of the financial year. For the initial part of the work, certain conditions are provided:

Equity is SEK 20,000 thousand at the beginning of the financial year.

- The debt / equity ratio is 3 times at the beginning of the financial year.

- The balance sheet total, ie. total assets, is expected to increase by SEK 4 000 during the financial year.

A deposit of capital from the owners shall be made in the amount of SEK 600 000, which will be paid in during the coming financial year. Your task is to answer, based on the conditions above, the following two sub-questions. Enter your answers in thousands of kronor, SEK thousand, without spaces or points for thousands.

a) Equity at the end of the coming financial year will be: SEK thousand.

b) Budgeted profit after tax in the profit budget will be: SEK thousand.

Reference no: EM132958566

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