Answer ALL questions. [100] QUESTION 1 (20) 1.1 REQUIRED Use the information provided below to calculate the cost to Umhlali Stores (as a percentage) of not accepting the discount. (Assume a 365-day year.) (5) INFORMATION Jehcon Manufacturers' credit terms to Umhlali Stores are 60 days but the manufacturer is prepared to allow a 2.5% rebate if Umhlali Stores pays the account within 10 days. 1.2 Use the information given below to calculate the 1.2.1 E0Q (4) 1.2.2 Reorder point INFORMATION Gem Enterprises intends purchasing 7 200 units of product Nutri per month during 2021 at R30 per unit. The following additional information is available: Ordering cost R30 per order Stock holding cost 10% of the purchase price Lead time for delivery of an order 10 days Workdays for 2021 250 days 1.3 REQUIRED Use the information provided below to calculate the cash conversion cycle. (Assume a 365-day year.) (7) INFORMATION The following information was obtained from the records of Coastal Traders for 2019: Credit sales for the year Credit purchases for the year Inventories on 31 December 2019 Amount owing by debtors on 31 December 2019 Amount owing to creditors on 31 December 2019 Average age of inventories R1 380 000 R990 000 R27 000 R150 000 R42 000 15 days 34 PROGRAMME HANDBOOK: JULY 2020 INTAKE Answer ALL questions. [100] QUESTION 1 (20) 1.1 REQUIRED Use the information provided below to calculate the cost to Umhlali Stores (as a percentage) of not accepting the discount. (Assume a 365-day year.) (5) INFORMATION Jehcon Manufacturers' credit terms to Umhlali Stores are 60 days but the manufacturer is prepared to allow a 2.5% rebate if Umhlali Stores pays the account within 10 days. 1.2 Use the information given below to calculate the 1.2.1 E0Q (4) 1.2.2 Reorder point INFORMATION Gem Enterprises intends purchasing 7 200 units of product Nutri per month during 2021 at R30 per unit. The following additional information is available: Ordering cost R30 per order Stock holding cost 10% of the purchase price Lead time for delivery of an order 10 days Workdays for 2021 250 days 1.3 REQUIRED Use the information provided below to calculate the cash conversion cycle. (Assume a 365-day year.) (7) INFORMATION The following information was obtained from the records of Coastal Traders for 2019: Credit sales for the year Credit purchases for the year Inventories on 31 December 2019 Amount owing by debtors on 31 December 2019 Amount owing to creditors on 31 December 2019 Average age of inventories R1 380 000 R990 000 R27 000 R150 000 R42 000 15 days 34 PROGRAMME HANDBOOK: JULY 2020 INTAKE