QUESTION 2 FINANCE Study the following information and answer ALL of the questions that follow. INFORMATION Rose Distributors Income Statements for the year ended 31 December 2020 and 2019 2020 Sales (all credit) 933000 Cost of sales (all credit) (514229) Gross profit 418771 Operating expenses: (344137) Selling, general and administrative (321037) Other expenses (23100) Operating profit 74634 Other income: 8930 Interest income 8930 Profit before interest 83564 Interest expense (6548) Profit before tax 77016 Tax (34657) Net profit after tax 42359 2019 1072350 (591364) 480986 (371264) (331100) (40164) 109722 8364 8364 118086 (9850) 108236 (48706) 59530 Rose Distributors Balance Sheets for the year ended 31 December 2020 and 2019 2020 2019 Assets Non-current assets Current assets: Inventories Accounts receivable Cash and cash equivalents 109887 123301 88043 18840 16418 233188 109456 120598 85690 17252 17656 230054 Total assets Owners' equity and liabilities Owners' equity Non-current liabilities Current liabilities Accounts payable Other current liabilities Total owners' equity and liabilities 89441 66009 77738 40322 37416 233188 79337 62169 88548 46370 42178 230054 2.1 Use the following information to calculate the economic order quantity: As part of its trading activity, Rose Distributors purchases 15 000 roses at R5 each per annum. The roses are sold at R 10 each at a steady rate during the year. The cost of placing a single order amounts to R 35. Inventory holding cost amounts to R0.30 per unit. Use the following information to calculate the cost of not accepting a discount: Nursery Wholesaler's normal credit terms to Rose Distributors are 30 days but is prepared to allow a 3.3% rebate if Rose Distributors pays the account within 15 days. Calculate the cost to Springbok Distributors of not accepting the discount