Fin 3702 assignment 2 - Study guides, Class notes & Summaries

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

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...

QUESTION 1 Three important line items on the statement of cash flows that must be obtained from the income statement include all of the following EXCEPT … 1. interest expenses. 2. net profit after taxes. 3. depreciation and any non-cash charges. 4. cash dividends paid on both preference and ordinary shares. . QUESTION 2 Which one of the following will increase the balance on the cash flow statement of the firm? 1. Sale of stock on credit 2. Loan repayment to banks 3. Debtors payin...