Question

Sami sells banana and groundnuts at Dansoman Polyclinic. In view of an impending hospital infrastructure expansion program, she has obtained permission to sell waakye on the hospital compound. She visited L400 Micocredit for a loan. You gathered the following information in your interaction with her.

• She needs to buy a cooking pot valued at $185.00. She owns a pan used for selling the vaakye with the current value of $ 80.00

• Her locally manufactured coal pot uses LPG gas and can prepare food on a relatively larger-scale, is estimated at $80.00. The LPG cylinder costs $ 70.00.

• She has arranged with the carpenter to prepare a table, a hi$ stool, two long benches and a long table which will enable her customers eat at her joint. The total cost of the furniture is $ 420.00. Her husband has been able to raise $200.00 cash for this purpose. The carpenter has agreed to give her two months to settle her bill.

• Eating plates, spoons and other cooking utensils will cost her $ 350.00. Her savings balance at L400 Finance is $ 250.00. The woman selling these items has agreed on a one-month trade credit. However, she must make an initial payment of $ 100.00 before she will be allowed to take the items.

• She will stock-up the rice and beans for at least a month in order to avoid unplanned price changes. It takes 3 days to finish using a mini bag of rice valued at $ 180.00 and twice that period to fully use up a mini bag of beans valued at $ 250.00. She has negotiated for a month’s trade credit with her supplier.

• She requires about $ 250.00 to finance fish, meat and all the other ingredients for preparing he pepper and stew. She requires about $ 100.00 to provide for any unexpected change in prices of the ingredients.

• She will be able to raise about $ 250.00 from selling the remaining stock of banana and groundnuts

a. Prepare a Statement of Affairs schedule for Sami at the beginning of the business in order to determine the amount of loan she may requires for the business.

Answer 1

Solution:-

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