RSK4804 Assignment 1 (COMPLETE ANSWERS) 2024 (546485) - DUE 26 April 2024
RSK4804 Assignment 1 2024 (546485) - DUE 26 April 2024
RSK4804 EXAM PACK 2024
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University of South Africa (Unisa)
Credit Risk Management (RSK4804)
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RSK4804
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, CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2023
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
FIRST: MR. S MOLEFE
SECOND: MR. M NXUMALO
EXTERNAL: DR. H Le ROUX
This assessment consists of 21 pages.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10pt.
4. Remember to sign the declaration page at the end of this document. Your work will not be
marked UNLESS that page is completed.
, RSK4804
Date: 30 January 2023
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
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scan this QR code. ACCESS CODE
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scanned as soon as possible to start the invigilation.
Exam Access Code: d3d4642d
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, CONFIDENTIAL
Page 2 of 21 RSK4804
January/February 2023
QUESTION 1 [15]
You are a new credit manager for Mbabane National Bank. An application for a temporary loan
facility to bridge Ngwane Transport and Logistics’ working capital requirements, lands on your
desk. Consult the information below, to assist you in making an informed decision:
Account Opening Balance Closing Balance
a. Inventory R23m R20m
b. Accounts receivable R30m R26m
c. Accounts payable R22m R24m
d. Net sales during the year were R90m, while cost of goods sold amounted to 60% of the
sales. Interpret the cash conversion cycle if the industry average is 85 days.
i. Calculate Ngwane Transport and Logistics’ operating cycle and working capital
(cash conversion) cycle. (13)
ii. Communicate your decision to the relationship manager and make
recommendations. (2)
[TURN OVER]
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