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FIN3703 Assignment 2 Due 7 September 2024 $2.81   Add to cart

Exam (elaborations)

FIN3703 Assignment 2 Due 7 September 2024

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The Question Dalton Ltd – is the third largest South African manufacturer of high-quality JoJo tanks with its head offices situated in Midrand. The company owns four branches: one in Naturena, the second in Ennerdale, the third in Pachuca and the fourth in Roodepoort. Although the market f...

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  • September 4, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
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FIN3703

Assignment 2

Semester 2

DUE 7 September 2024

Quiz & Answers

, QUESTION 1:
The treasurer must develop a cash flow statement to determine how much Dalton
Ltd needs each day to fund the business’s operations.


Answer: (a) True
QUESTION 2:
The ability for Dalton Ltd to replace its defected injection moulding is referred to as
liquidity.


Answer: (b) False
Liquidity refers to the company’s ability to meet its short-term obligations, not the
ability to replace assets.


QUESTION 3:
A depreciation of R600 000 (R3 000 000/5) that will be written off by Dalton at the
end of the following financial year after replacing their injection moulding is part of
expenses and will be treated as a cash outflow.


Answer: (b) False
Depreciation is a non-cash expense, so it will not be treated as a cash outflow.


QUESTION 4:
The cost of the banker’s acceptance for the company (which is a yield to the bank)
is:
Answer: (c) 6.11%
To calculate the yield:

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