FIN 3702

FOR QUESTIONS 1 TO 5 REFER TO THE FOLLOWING INFORMATION: © 2021 Together We Pass. All rights reserved. Extract from the statement of financial position of Rhino’s R Ltd Rhino’s R Ltd’s statement of financial position as on 31 December 2011 1. 2. 3. 4. © 2016 Together We Pass. All rights reserved. 5. 6. 7. 8. 9. © 2016 Together We Pass. All rights reserved. FOR QUESTIONS 10 TO 12 R

QUESTION 1 The cost of giving up a cash discount under the terms 5/20 net 120 assuming a 365-day year is … 1. 15.00%. 2. 15.80%. 3. 18.94%. 4. 19.21%. The correct answer is option 4. 19.21% Cost of giving up a cash discount = = = 19.21% Gitman et al 2010, chapter 15:607 Gitman et al 2014, chapter 16:625 3 QUESTION 2 A firm has actual sales in November of R1 000 and projected sales in December and January of R3 000 and R4 000 respectively. The firm makes 15...

Question 1 The correct option is 4. A firm with highly unpredictable sales revenue would best choose … financing strategy in order to minimise risk. 1. a seasonal 2. the trade-off 3. the aggressive 4. the conservative Principles of Managerial Finance, 12e (Gitman) - Chapter 14 – Working Capital Management Question 2 The correct option is 2. Once sales are forecasted, … must be generated in order to estimate a variety of operating costs. 1. a cash budget 2. a production plan ...

QUESTION 1 The cost of giving up a cash discount under the terms 5/20 net 120 assuming a 365-day year is … 1. 15.00%. 2. 15.80%. 3. 18.94%. 4. 19.21%. The correct answer is option 4. 19.21% Cost of giving up a cash discount = = = 19.21% Gitman et al 2010, chapter 15:607 Gitman et al 2014, chapter 16:625 3 QUESTION 2 A firm has actual sales in November of R1 000 and projected sales in December and January of R3 000 and R4 000 respectively. The firm makes 15...

Question 1 The correct option is 4. A firm with highly unpredictable sales revenue would best choose … financing strategy in order to minimise risk. 1. a seasonal 2. the trade-off 3. the aggressive 4. the conservative Principles of Managerial Finance, 12e (Gitman) - Chapter 14 – Working Capital Management Question 2 The correct option is 2. Once sales are forecasted, … must be generated in order to estimate a variety of operating costs. 1. a cash budget 2. a production plan ...