$1\mathrm{.}1$

REQUIRED

Study the information provided below and calculate the following expressed to two decimal places:

$1\mathrm{.}1\mathrm{.}1$ Working capital cycle. $($Do not use any average figures.$)$

$1\mathrm{.}1\mathrm{.}2$ The effective interest rate on the loan from Zap Bank if the interest was discounted

$1\mathrm{.}1\mathrm{.}3$ The effective interest rate on the loan from Zap Bank if there was a $10\%$ compensating

balance requirement.

INFORMATION

Excerpts of financial statements of Premier Limited for $2022$ are as follows:

Statement of Comprehensive Income for the year ended $31$ December $2022$

Note:

The loan from Zap Bank was obtained on $01$ January $2022.$ No repayments were made during the financial

year. Interest is not capitalised.