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QUESTION ONE [25] 1.1. A meatal supplier presents the following data in respect of their purchases: Annual demand 212 000 units Maximum daily requirement 1 800 units Average daily requirement 1 060 units Carrying cost R 1, 80 per unit Ordering cost R 40 per order Lead time 14 days Time needed to acquire emergency supplies 3 days Note: Assume that sales are even throughout the year.

You are required to calculate: 1.1.1. Economic order quantity. (5) 1.1.2. Ordering point. (4) 1.1.3. Danger level. (4) 1.2. Keez Ltd are offered terms of 1,5/10 net 30. If the embedded discount is not taken, then the full amount becomes due. Calculate the cost of forgoing the discount. (4) 1.3. Qued Ltd factors all its accounts receivables. The factoring agreement they have concluded is that a 10% reserve is held and a 3% commission is charged on the book value of the account. Further interest is charged at 2% per month (60% per annum) on advances. Qued Ltd wants to factor an account of R8 000 that falls due in 30 days. 1.3.1. Calculate the advance that Qued Ltd will receive. (5) 1.3.2. Calculate the net cost to Qued Ltd. (3)

QUESTION TWO [25] The following financial statements relate to Gilfro Limited for the year ending 30 June 2022: Statement of Comprehensive Income for the year ended 30 June 2022

Sales 36 000 Cost of sales 12 000 Gross profit 24 000 Operation expenses 7 200 Operating profit 16 800 Interest expense 1 680 Profit before tax 15 120 Tax 3 780 Profit after tax 11 340

Statement of Financial Position as at 30 June 2022 ASSETS R.00000 Non-current assets 28 320 Current assets 14 880 Inventory 4 080 Debtors 9 600 Bank 1 200

43 200 EQUITY AND LIABILITIES Owners equity 31 040 Capital 16 000 Retained income 15 040 Non-current liabilities 8 000 Current liabilities 4 160 Creditors 4 160

43 200 Note: Inventory on 1 July 2021 amounted to R4 000 000.

Required:

Calculate the following ratios and where applicable round off answers correctly to two decimal places.

2.1. Gross margin (5) 2.2. Inventory turnover (5) 2.3. Debtors collection period (5) 2.4. Return on own capital (5) 2.5. Acid test ratio (5

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