You are a new credit manager for Mbabane National Bank. An application for a temporary loan...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 a. Inventory b. Accounts receivable i. Opening Balance R23m R30m c. Accounts payable 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. ii. R22m Closing Balance R20m R26m Communicate your decision recommendations. R24m Calculate Ngwane Transport and Logistics' operating cycle and working capital (cash conversion) cycle. (13) your decision to the relationship manager and make (2) 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 a. Inventory b. Accounts receivable i. Opening Balance R23m R30m c. Accounts payable 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. ii. R22m Closing Balance R20m R26m Communicate your decision recommendations. R24m Calculate Ngwane Transport and Logistics' operating cycle and working capital (cash conversion) cycle. (13) your decision to the relationship manager and make (2)
Expert Answer:
Answer rating: 100% (QA)
i To calculate Ngwane Transport and Logistics operating cycle and working capital cycle we need to u... View the full answer
Related Book For
Organizational Behavior
ISBN: 978-0077862589
7th edition
Authors: Steven McShane, Mary Ann Von Glinow
Posted Date:
Students also viewed these accounting questions
-
Net sales are $400,000, cost of goods sold is $310,000, operating expenses are $60,000 and other revenues are $5,200. What are the gross profit margin and profit margin? a. 22.5% and 7.5% b. 7.5% and...
-
If the end-of-period balance for cost of goods sold is $90,000 and underapplied overhead is $10,000, what is the ending balance in cost of goods sold, after adjusting for the underapplied overhead?
-
Inventory turnover is calculated as cost of goods sold divided by ending inventory . 1. True 2. False
-
Determine the force in member GC of the truss and state if this member is in tension or compression. Units Used: kip = 103 lb Given: F1 = 1000 lb F2 = 1000 lb F3 = 1000 lb F4 = 1000 lb a = 10 ft =...
-
Why should the selection process be adapted to fit the organization's job descriptions?
-
Jackpot Mining Company operates a copper mine in central Montana. The company paid $ 1 , 0 0 0 , 0 0 0 in 2 0 2 4 for the mining site and spent an additional $ 6 0 0 , 0 0 0 to prepare the mine for...
-
How might a statistician challenge this argument that appeared The New York Times [10] in January 2014? Punishment and surveillance by itself causes people to withdraw from political...
-
City Bus Corporation provides school bus transportation to public schools in Lancaster County. City Bus owns 50 buses that are garaged in three different cities within the county. The firm faces...
-
what is the risk premium for a stock when the risk free rate is 5%, the S&P 500 index has an expected return of 22% and the stock has a beta of 2.5?
-
Comparative statements of shareholders? equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. Required: 1. Infer from...
-
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2014. Costs incurred: raw materials purchases $54,000, direct labor $47,000,...
-
What is the option value of abandonment? How can one estimate it?
-
What is the intent behind anti-dilution clauses? Who benefits most from the full-ratchet clause?
-
What are the pros and cons for investors to stage their financial commitments?
-
What are the investment motives of family and friends? How can they help?
-
What determines the seniority of the preferred terms across different financing rounds?
-
You just turned 32 years old, just received your current $88,000 (annual) salary and anticipate retiring on your 67th birthday. Your estimate of future salary growth in the current position is 3% per...
-
Factor and simplify, if possible. Check your result using a graphing calculator. 3 cot 2 + 6 cot + 3
-
In this chapter, we highlighted work-related stressors such as harassment and incivility, workload, and lack of task control. Of course, there are many non-work-related stressors that increasingly...
-
It has been said that all employees are motivated. Do you agree with this statement?
-
In Chapter 2, we discussed "values across cultures," including individualism, collectivism, power distance, uncertainty avoidance, and achievement orientation. How are these national cultures...
-
The chief goal of the private sector is effciency.Why? The primary focus of the public sector is equity. Why? It is quite possible to be highly effcient yet ineffective. It is also possible to be...
-
Why is healthcare reform such a contentious issue in the United States? Why have public and private efforts been unsuccessful in fully addressing the challenge of affordable health care? What role(s)...
-
Drawing on economic theory, what kinds of market failure underlie the worlds most pressing problems? Examine three examples: hunger, groundwater contamination, and literacy.
Study smarter with the SolutionInn App