Business Studies · May / June 2017 · Paper 11 · Question 2

Josh owns an office cleaning business. He has a number of large and small business customers. Josh employs 6 full-time cleaners who are all given off-the-job training. Josh believes that using the latest cleaning equipment increases added value. He said: ‘Customers are happy with the service. I am always sending text (SMS) messages to workers about additional work.’ Josh has been looking at his balance sheet. He cannot decide if a bank loan is the best source of finance to use for new equipment. The new equipment will cost $60000. Table 1: Extract from Josh’s balance sheet as at 30 April 2017 ($000) Current assets 120 Trade receivables 90 Cash X Current liabilities Y Net current assets 70

Read automatically from the paper; the printed page above is exact.