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6. Financial goals as a starting point for budget work A company must start its...

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Finance

6. Financial goals as a starting point for budget work

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.

Certain conditions are given for the initial part of the work:

- Equity is SEK 10,000 thousand at the beginning of the financial year.

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

- The value of the assets is expected to be SEK 3,000,000 higher at the end of the financial year, as it intends to make investments in its machinery.

- A dividend to the owners shall be made in the amount of SEK 500,000, which will be paid 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. Each correctly answered sub-question gives 5 points. tkr.

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

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

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