Raysut Cement is engaged in the business of export of cement to the GCC countries. In the past, the performance of the company had been up to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager, Abdullah estimated the amount of funds required and the timings. Abdullah therefore, began with the preparation of a sales forecast for the next four years. Abdullah also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside. Based on the above case study You are required to answer the following question. a. Find out the financial decisions in the case study b. Which financial objective should Abdullah keep in mind while taking the decision

Raysut Cement is engaged in the business of export of cement to the GCC countries. In the past, the performance of the company had been up to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager, Abdullah estimated the amount of funds required and the timings. Abdullah therefore, began with the preparation of a sales forecast for the next four years. Abdullah also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside. Based on the above case study You are required to answer the following question. a. Find out the financial decisions in the case study b. Which financial objective should Abdullah keep in mind while taking the decision

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Raysut Cement is engaged in the business of export of cement to the GCC countries. In
the past, the performance of the company had been up to the expectations. In line with the
latest technology, the company decided to upgrade its machinery. For this, the Finance
Manager, Abdullah estimated the amount of funds required and the timings. Abdullah
therefore, began with the preparation of a sales forecast for the next four years. Abdullah
also collected the relevant data about the profit estimates in the coming years. By doing
this, he wanted to be sure about the availability of funds from the internal sources of the
business. For the remaining funds he is trying to find out alternative sources from outside.
Based on the above case study You are required to answer the following question.
a. Find out the financial decisions in the case study
b. Which financial objective should Abdullah keep in mind while taking the decision

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