Exam (elaborations)
FIN3702 ASSIGNMENT 2 SEMESTER 1 2023
- Institution
- University Of South Africa
FIN3702 ASSIGNMENT 2 SEMESTER 1 2023
[Show more]
Content preview
FIN3702ASSIGNMENT 2
SEMESTER 1
2023
WITH ANSWERS 100% CORRECT
,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
2
, 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% of sales for cash,
collects 45% of its sales one month following the month of sale and collects the balance
two months following the month of sale. The firm’s total expected receipts in January are
…
1. R 700.
2. R1 900.
3. R2 100.
4. R2 350.
R600 + R1 350 + R400 = R2 350
Month November December January
(actual) (forecast) (forecast)
Forecasted sales (R) 1 000 3 000 4 000
Cash sales (R) 15% 150 450 600
Credit sales (R) 45% - 450 1 350
Credit sales (R) 40% - - 400
Totals (R) 2 350
Prescribed book 2010 edition: chapter 3, page 107
Prescribed book 2014 edition: chapter 4, page 118
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller omoka11. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R54,54. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now