This section consists of multiple-choice questions. Each question is worth one (1) mark except for Question 2.1 which accounts for 2 marks. Indicate which of the answer options provided is the correct answer. [9 marks]

0. 1. You place an order for 300 beer mugs at a unit price of R175. The supplier offers terms of 2/15, net 30. How long do you have to pay before the account is overdue? If you take the full period, how much money must you pay to settle the account? (2)
1. 30; R52 500
2. 15; R51 450
3. 15; R1 050
4. 20; R50 250

2. Silole Investments Ltd has sales of R12 million, average collection period is 43 days. What is Silole's average investment in accounts receivables as shown on the balance sheet?

1. R1 413 699
2. R1 254 752
3. R3 200 000
4. R1 200 000

3. Langas Products trades every day of the week and has weekly credit sales of R18 000. Its average collection period is 26 days. The cost of production is 83 percent of the selling price. What is Langas average accounts receivable?

1. R66 857.14
2. R56 785.24
3. R18 000.00
4. R65 154.00

4. Media Services Ltd has an average collection period of 62 days. Its average daily investment in receivables (i.e. its daily credit sales) is R75 000. What is receivables turnover? What are annual credit sales?

1. 4.77; R651 655.00
2. 5.89; R441 532.26
3. 5.33; R549 689.56
4. 4.66; R499 700.88