Question 4 (20 points; Ratio Analysis) READ THE CASE AND ANSWER AS REQUIRED 4.1 Calculate the DuPont Model, given the following balances: Year 1 data Cash R16,080 Accounts receivable R9,500 Prepaid R3,150 Supplies R675 Equipment R25,200 Accumulated depreciation equipment R8,150 Year 2 data Cash R20,000 Accounts receivable R15,000 Prepaid R1,175 Supplies R2,675 Equipment R89,057 Accumulated depreciation equipment R36,800; Equity R82,600 Net sales R325,000 Net income of R56,824 Assume sales revenue and net sales are the same. Question 3 (13 points Working Capital READ THE CASE AND ANSWER AS REQUIRED Aztec Products wishes to evaluate its cash conversion de COC Research by one of the firm's financial analysis indicates that on average the foldsoms in inventory for 65 days, pays its suppliers 35 days after purchase, and collects is receivables after 55 days. The firm's annual sales (alon creditare about R2.1 billion cost of goods sold represent about 87 percent of sales and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year 3.1 (7 points What is Aztec Products cash conversion (CCCP 32 points) # Astec could shorten ts CCC by 5 days. would it be best to reduce the inventory holding period, reduce the ele collection period of extend the accounts payable period? Why? 33 points) How should the fim manage its inventory counts receivable and accounts payable in order to reduce the length of its cash conversion cycle? Question 4 20 points Ratio Analysis READ THE CASE AND ANSWER AS REQUIRED 41 Calculate the DuPont Model, given the following balances Year 1 data Cash R16,000 Accounts receivable 9.500 Prepaid R3,150 Supplies R675 Epment R25.200 Accumulated depreciation equipment B.150 Year 2 data Cash R20,000 Accounts receivable R15.000 Prepaid R1,175 SuppleR2.675 Equipment R89.057 Accumulated depreciation equipment 36.00 Equity R2,000 Notes R305.000 Net income of 56.24 Assume sales revenue and net sales are the same Question 4 (20 points; Ratio Analysis) READ THE CASE AND ANSWER AS REQUIRED 4.1 Calculate the DuPont Model, given the following balances: Year 1 data Cash R16,080 Accounts receivable R9,500 Prepaid R3,150 Supplies R675 Equipment R25,200 Accumulated depreciation equipment R8,150 Year 2 data Cash R20,000 Accounts receivable R15,000 Prepaid R1,175 Supplies R2,675 Equipment R89,057 Accumulated depreciation equipment R36,800; Equity R82,600 Net sales R325,000 Net income of R56,824 Assume sales revenue and net sales are the same. Question 3 (13 points Working Capital READ THE CASE AND ANSWER AS REQUIRED Aztec Products wishes to evaluate its cash conversion de COC Research by one of the firm's financial analysis indicates that on average the foldsoms in inventory for 65 days, pays its suppliers 35 days after purchase, and collects is receivables after 55 days. The firm's annual sales (alon creditare about R2.1 billion cost of goods sold represent about 87 percent of sales and purchases represent about 40 percent of cost of goods sold. Assume a 365-day year 3.1 (7 points What is Aztec Products cash conversion (CCCP 32 points) # Astec could shorten ts CCC by 5 days. would it be best to reduce the inventory holding period, reduce the ele collection period of extend the accounts payable period? Why? 33 points) How should the fim manage its inventory counts receivable and accounts payable in order to reduce the length of its cash conversion cycle? Question 4 20 points Ratio Analysis READ THE CASE AND ANSWER AS REQUIRED 41 Calculate the DuPont Model, given the following balances Year 1 data Cash R16,000 Accounts receivable 9.500 Prepaid R3,150 Supplies R675 Epment R25.200 Accumulated depreciation equipment B.150 Year 2 data Cash R20,000 Accounts receivable R15.000 Prepaid R1,175 SuppleR2.675 Equipment R89.057 Accumulated depreciation equipment 36.00 Equity R2,000 Notes R305.000 Net income of 56.24 Assume sales revenue and net sales are the same