Answer ALL questions in this paper. $[100$ MARKS$]$

QUESTION $1(25$ Marks$)$

An order of $$155750$ was processed to replace laptops for senior management. The terms of sale

require that $42\%$ of the order be paid within two working days of placing the order. $28\%$ of the account

must be settled within $90$ days whilst the balance should be paid within six months of order date. In the

event that the balance be paid in full within $90$ days, the company allows an early settlement discount of

$9,25\%.$ At transaction date, the following rates applied:

SPOT Rate R$11,25$

$3-$month Forward Rate R$13,80$

$6-$month Forward Rate R$15,75$

Note to student: Detail all calculations. Rounding to two decimal places is required.

Required:

$1\mathrm{.}1$ Calculate the total purchase price of the laptops that should be capitalised in the fixed asset

register.

$(4$ Marks$)$

$1\mathrm{.}2$ Determine the value of the discount received when concluding the deferred payments within $90$

days.

$(6$ Marks$)$

$1\mathrm{.}3$ The major supplier of parts required by your South African based company is affected by new

export regulations and restrictions in America. Clarify what actions $($if any$)$ are required in the enterprise

risk management process.

$(15$ Marks$)$