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FIN3702 - Working Capital Management - Exam Pack
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- University Of South Africa (Unisa)
FIN3702 - Working Capital Management - Exam Pack
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LSLSSFIN3702
ernest
Luciano school of law and social sciences
LSLSS
,Table of Contents
MAY/JUNE 2013 ............................................................................................................................................ 2
SECTION A ................................................................................................................................................. 2
SECTION B ................................................................................................................................................. 4
QUESTION 1 .......................................................................................................................................... 4
QUESTION 2 .......................................................................................................................................... 4
OCT/NOV 2013 .............................................................................................................................................. 6
SECTION A ................................................................................................................................................. 6
SECTION B ................................................................................................................................................. 8
QUESTION 1.A ....................................................................................................................................... 8
QUESTION 1B ........................................................................................................................................ 9
QUESTION 2 ........................................................................................................................................ 10
MAY/JUNE 2014 .......................................................................................................................................... 11
SECTION A ............................................................................................................................................... 11
SECTION B ............................................................................................................................................... 13
QUESTION 1 ........................................................................................................................................ 13
QUESTION 2 ........................................................................................................................................ 15
OCT /NOV 2014 ........................................................................................................................................... 17
SECTION A ............................................................................................................................................... 17
SECTION B ............................................................................................................................................... 20
QUESTION 1 ........................................................................................................................................ 20
QUESTION 2 ........................................................................................................................................ 21
MAY /JUNE 2015 ......................................................................................................................................... 24
SECTION A ............................................................................................................................................... 24
SECTION B ............................................................................................................................................... 27
QUESTION 1 ........................................................................................................................................ 27
Question 2 ........................................................................................................................................... 28
1
, MAY/JUNE 2013
SECTION A
QUESTION ANSWER
1 3 INCREASEIN A CURRENTASSET ITEM IS
AN OUTFLOW.THE OPPOSITE IS ALSO
TRUE
2 3
3 2 (R25-R50+R30-R20+15-R35+5)
Increase in current asset and decrease in
current liabilities is an inflow, the opposite is
true.
4 2
5 4 Free cash flow =NFA(300 000)
DPN(200 000)
CA(150 000)
CL75000
OCF 700000
=125000
6 4
7 2 Not all accounts payable accrual collections
or purchases or dividends paid.
8 2 Cash receipts 400 000
Disbursements (500 000)
( 100 000)
OB 350 000
+250 000
Mini Bal (250 000)
0
9 3 It’s a cash budget not a sales forecast.
10 2 Current assets
Receivables 45 000
Inventory 55 000
Cash 2000
102 000
Less current liabilities
Account payables(90 000)
Overdraft (14000)
Networking capital(2000)
11 2 Current assets –current liabilities.
10000-5000=5000
12 2 15%×20000
=3000
13 4
14 2 Conservative financing strategy use long term
2
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