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...
FIN3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 7 September 2024
FIN3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 7 September 2024
FIN3703 Assignment 2 (QUIZ) Semester 2 2024 - DUE 7 September 2024
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University of South Africa
Corporate Treasury Management
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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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