lOMoAR cPSD| 47715245
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, lOMoAR cPSD| 47715245
UNIVERSITY EXAMINATIONS
May/June 2023
FIN3702
WORKING CAPITAL MANAGEMENT
70 Marks
2 Hours
This paper consists of 20 pages including an invigilator QR code on page 2 and one rough work page on page 20.
Please scan the QR code before you start your examination. If you encounter difficulty with scanning the QR code,
you can also enter the QR access code as indicated at the bottom of the QR code to activate your online invigilation.
Instructions:
Use of a non-programmable calculator is permissible.
This is a closed book examination, and you are advised not to consult your study material.
This exam is an online assessment, and all output should be your own work. Please remember to sign the honesty
declaration ONLINE before you commence with the examination paper.
The exam paper remains the property of the university and may not be distributed.
Please note that you submit your answers the same way you submit a written assignment on myUNISA (myExams
platform). It is necessary that you submit your exam file in PDF format and obtain and/or keep a screenshot of
successful upload. Further instructions have been provided on myUNISA. Additionally, you will all need to use the
invigilator application during the exam and details of this are provided on page 2 of this examination paper.
PLEASE NOTE that you have 2 hours within which to complete this exam. You have 15 additional minutes for
downloading the exam paper and ONLY 30 additional minutes for uploading your answers. Please use your time
wisely.
Adequate space for answering the questions has been provided on this exam paper but you are welcome to use
your own answer sheets if your work is legible.
Answer SECTION A and SECTION B.
SECTION A consists of 30 multiple-choice questions worth 30 marks (answer table provided
on page 10) and SECTION B consists of 3 essay questions totalling 40 marks. Your final mark
out of 70 will be expressed as a percentage.
Downloaded by palmer kamulee ()
, lOMoAR cPSD| 47715245
FIN3702
CONFIDENTIAL May/June 2023
YOUR EXAM QR CODE & QR ACCESS CODE
YOUR EXAM QR CODE & EXAM
ACCESS CODE
Exam Access Code: f689e051
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet to log into the Invigilator App and scan this QR code. If you encounter
difficulty in scanning the QR code, you can alternatively enter the Exam Access Code below the QR code to start
the invigilation. You can only scan this QR code once. You can only finish the invigilator app when your entire
assessment is completed. Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time, and it should therefore be scanned as soon as possible to
start the invigilation.
Once the QR code is scanned, ensure your media volume Is turned up and place your smartphone next to you. The
Invigilator App will notify you with a notification beep when you are required to action a request, which you
should then perform. We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device, you may access your assessment in the application by pressing the ‘Access Exam’
button in the top right corner of your app. Keep the Invigilator App open on your cell phone for the full
duration of the assessment. You are not allowed to minimise or leave the app. Ensure you are connected to
the internet to commence the invigilation as well as at the end of the assessment. No internet connection is required
during the assessment. You must adhere to the assessment time limit communicated to you as the time
displayed in the Invigilator App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early. If you are
performing a written or Scan-and-Upload assessment: The Invigilator App may request, you to take a picture
of every page of your answer sheet at the end of the assessment. This does NOT replace the normal upload of
your script to your institution’s online portal. After completing invigilation and following all app instructions,
you must upload your Invigilation App data. If however, there is a delay in the upload of the app data at the end
of the assessment, you should prioritise the upload of your script to your university portal, and you can temporarily
minimise the app to do so. Uploading of app data is not time sensitive and you can come back, and do it after you
have successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp the Invigilator Helpdesk on 073 505 8273.
Page 2 of 20
Downloaded by palmer kamulee ()
, lOMoAR cPSD| 47715245
FIN3702
CONFIDENTIAL May/June 2023
SECTION A: MULTIPLE-CHOICE QUESTIONS [30 MARKS]
1. ABSA Bank Ltd has offered Tumi Pizza Parlour the following in response to a R100
000 one-year loan application which was made to the bank. The stated rate was 7% and
a 20% compensating balance. What will the effective annual rate be...
1. 7.00%.
2. 8.40%.
3. 8.75%. 4. 13.00%.
2. Boithumelo Furniture Suppliers maintain an average inventory of 2000 desks to supply
to schools. The carrying cost per desk is estimated at R1.25. The company places an
order of 4000 desks on the first of each quarter and the order cost is R80. What will the
company’s carrying cost be if the firm uses the EOQ method of inventory management?
1. R 894.
2. R 1 215.
3. R 2 500. 4. R16 000.
3. Jamil Katende purchased inventory to the value of R100 000. The terms of sale were
3/15 net 45. What is the effective annual interest rate if he paid the full amount in 45
days?
1. 28.00%
2. 44.90%
3. 57.60%
4. 74.30%
4. The credit policy of Phenya Archar Stores is 2/10 net 30. At present 25% of customers
take advantage of the discount, 55% pay within the net period, and the remainder pay
within 42 days of invoicing. What will the effect on receivables be if all customers take
the discount?
1. Lower than the present level.
2. Higher than the present level.
3. Same as the present level.
4. Cannot be determined.
5. Mamaro Ltd. has a receivables turnover rate of 11.5, a payables turnover of 9.8 and an
inventory turnover rate of 13.6. What is the approximate length of the firms operating
cycle? (Assume a 365 day-year)
1. 15 days.
2. 22 days.
3. 37 days.
4. 60 days.
Page 3 of 20
Downloaded by palmer kamulee ()
Downloaded by palmer kamulee ()
, lOMoAR cPSD| 47715245
UNIVERSITY EXAMINATIONS
May/June 2023
FIN3702
WORKING CAPITAL MANAGEMENT
70 Marks
2 Hours
This paper consists of 20 pages including an invigilator QR code on page 2 and one rough work page on page 20.
Please scan the QR code before you start your examination. If you encounter difficulty with scanning the QR code,
you can also enter the QR access code as indicated at the bottom of the QR code to activate your online invigilation.
Instructions:
Use of a non-programmable calculator is permissible.
This is a closed book examination, and you are advised not to consult your study material.
This exam is an online assessment, and all output should be your own work. Please remember to sign the honesty
declaration ONLINE before you commence with the examination paper.
The exam paper remains the property of the university and may not be distributed.
Please note that you submit your answers the same way you submit a written assignment on myUNISA (myExams
platform). It is necessary that you submit your exam file in PDF format and obtain and/or keep a screenshot of
successful upload. Further instructions have been provided on myUNISA. Additionally, you will all need to use the
invigilator application during the exam and details of this are provided on page 2 of this examination paper.
PLEASE NOTE that you have 2 hours within which to complete this exam. You have 15 additional minutes for
downloading the exam paper and ONLY 30 additional minutes for uploading your answers. Please use your time
wisely.
Adequate space for answering the questions has been provided on this exam paper but you are welcome to use
your own answer sheets if your work is legible.
Answer SECTION A and SECTION B.
SECTION A consists of 30 multiple-choice questions worth 30 marks (answer table provided
on page 10) and SECTION B consists of 3 essay questions totalling 40 marks. Your final mark
out of 70 will be expressed as a percentage.
Downloaded by palmer kamulee ()
, lOMoAR cPSD| 47715245
FIN3702
CONFIDENTIAL May/June 2023
YOUR EXAM QR CODE & QR ACCESS CODE
YOUR EXAM QR CODE & EXAM
ACCESS CODE
Exam Access Code: f689e051
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet to log into the Invigilator App and scan this QR code. If you encounter
difficulty in scanning the QR code, you can alternatively enter the Exam Access Code below the QR code to start
the invigilation. You can only scan this QR code once. You can only finish the invigilator app when your entire
assessment is completed. Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time, and it should therefore be scanned as soon as possible to
start the invigilation.
Once the QR code is scanned, ensure your media volume Is turned up and place your smartphone next to you. The
Invigilator App will notify you with a notification beep when you are required to action a request, which you
should then perform. We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device, you may access your assessment in the application by pressing the ‘Access Exam’
button in the top right corner of your app. Keep the Invigilator App open on your cell phone for the full
duration of the assessment. You are not allowed to minimise or leave the app. Ensure you are connected to
the internet to commence the invigilation as well as at the end of the assessment. No internet connection is required
during the assessment. You must adhere to the assessment time limit communicated to you as the time
displayed in the Invigilator App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early. If you are
performing a written or Scan-and-Upload assessment: The Invigilator App may request, you to take a picture
of every page of your answer sheet at the end of the assessment. This does NOT replace the normal upload of
your script to your institution’s online portal. After completing invigilation and following all app instructions,
you must upload your Invigilation App data. If however, there is a delay in the upload of the app data at the end
of the assessment, you should prioritise the upload of your script to your university portal, and you can temporarily
minimise the app to do so. Uploading of app data is not time sensitive and you can come back, and do it after you
have successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp the Invigilator Helpdesk on 073 505 8273.
Page 2 of 20
Downloaded by palmer kamulee ()
, lOMoAR cPSD| 47715245
FIN3702
CONFIDENTIAL May/June 2023
SECTION A: MULTIPLE-CHOICE QUESTIONS [30 MARKS]
1. ABSA Bank Ltd has offered Tumi Pizza Parlour the following in response to a R100
000 one-year loan application which was made to the bank. The stated rate was 7% and
a 20% compensating balance. What will the effective annual rate be...
1. 7.00%.
2. 8.40%.
3. 8.75%. 4. 13.00%.
2. Boithumelo Furniture Suppliers maintain an average inventory of 2000 desks to supply
to schools. The carrying cost per desk is estimated at R1.25. The company places an
order of 4000 desks on the first of each quarter and the order cost is R80. What will the
company’s carrying cost be if the firm uses the EOQ method of inventory management?
1. R 894.
2. R 1 215.
3. R 2 500. 4. R16 000.
3. Jamil Katende purchased inventory to the value of R100 000. The terms of sale were
3/15 net 45. What is the effective annual interest rate if he paid the full amount in 45
days?
1. 28.00%
2. 44.90%
3. 57.60%
4. 74.30%
4. The credit policy of Phenya Archar Stores is 2/10 net 30. At present 25% of customers
take advantage of the discount, 55% pay within the net period, and the remainder pay
within 42 days of invoicing. What will the effect on receivables be if all customers take
the discount?
1. Lower than the present level.
2. Higher than the present level.
3. Same as the present level.
4. Cannot be determined.
5. Mamaro Ltd. has a receivables turnover rate of 11.5, a payables turnover of 9.8 and an
inventory turnover rate of 13.6. What is the approximate length of the firms operating
cycle? (Assume a 365 day-year)
1. 15 days.
2. 22 days.
3. 37 days.
4. 60 days.
Page 3 of 20
Downloaded by palmer kamulee ()
