The owner of Supreme Fitness has requested your assistance as financial manager in advising on thepossible funding options the business has at its disposal in order to grow the business. There is potentialfor growth as people look to follow a healthier lifestyle after the Covid pandemic. Supreme Fitness islooking at increasing their footprint by opening smaller gyms within shopping centres because ofcheaper rentals on offer due to spare capacity and also to offer outdoor training classes.He has provided you with the following extract from the financial statementsRLong Term Loan400 000375 000Capital at beginning of yearPayables Control60 000Receivables Control15 000Profit for the year225 000Drawings19 750REQUIRED:Q.4.1 Write a report to the owner in which you discusswhat the financing role entails for you as a financial manager; andcalculate the necessary ratio to comment on the gearing of the business as itcurrently stands. The industry average is currently 50%.

A financial manager is someone who is responsible for all of an organization's main financial…

Answered: The owner of Supreme Fitness has…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2TP: Roald is the sales manager for a small regional manufacturing firm you own. You have asked him to...

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