Fin 3702 Study guides, Class notes & Summaries

FIN 3702 EXAM PACK 2022, University of South Africa (Unisa)

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FIN 3702 ASSIGNMENT 2 REVISION Posing for A+ (Question and Answer) 878794

Sales forecast → production plans → estimation of costs (labour, fixed costs) → pro forma statements → cash budget 2 4 Depreciation is a noncash item 3 2 Trade and other payables and accruals. 4 1 An increase in CA increase NWC, thereby reducing the risk of technical insolvency. 5 1 If a firm uses an aggressive financing strategy, it increases return and increases risk. 6 2 Produce low-cost short cycle goods. 7 3 OC = AAI + ACP AAI = OC - ACP = 120 -40 =...

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FIN3702 Assignment 2 Semester 2 2022 FIN3702 Assignment 2 Semester 2 2022

FIN 3701 MAY/JUNE 2013 section A Q1 2 initial investment Cost (200 000) Net working capital 5000 Inventory 3000 Receivables 2000 Payables 4000 Accruals 6000 Initial investments Q2 3 OCF = NOPAT + depreciation NOPAT = revenue 30000 Operating cost 13000  Marketing cost are irrelevant Depreciation 40000 EBIT 23000 Tax 3090 6900 NOPAT 16100 OCF = 16100 + 40000 =23900 Q4 2 NB: for a replacement decision you must use incremental operating cash flow i.e. OCF truck --- OCF van...

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 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...