In a finance and investment seminar, one of the facilitators noted that, “Management of debtors is crucial in working capital management”.
With reference to the above...(Solved)
In a finance and investment seminar, one of the facilitators noted that, “Management of debtors is crucial in working capital management”.
With reference to the above statement, discuss three factors that might influence the level of debtors in a firm.
Date posted: November 1, 2022. Answers (1)
Explain the following terms as used in the valuation of securities
(i) Fair value.
(ii) Investment value.(Solved)
Explain the following terms as used in the valuation of securities
(i) Fair value.
(ii) Investment value.
Date posted: November 1, 2022. Answers (1)
The following information relates to Mafuta Safi Ltd.:
...(Solved)
The following information relates to Mafuta Safi Ltd.:
Sh.
"000"
Purchase of raw materials (all on credit) 6,700
Usage of raw materials 6,500
Sales of finished goods (all on credit) 25,000
Cost of sales (finished goods) 18,000
Average creditors 1,400
Average raw materials inventory 1,200
Average work in progress 1,000
Average finished goods inventory 2,100
Average debtors 4,700
Assume a 365 days year
Required:
The length of the operating cash cycle.
Date posted: November 1, 2022. Answers (1)
Citing three reasons, justify the time preference value for money.(Solved)
Citing three reasons, justify the time preference value for money.
Date posted: November 1, 2022. Answers (1)
Explain three causes of conflict between shareholders and external auditors.(Solved)
Explain three causes of conflict between shareholders and external auditors.
Date posted: November 1, 2022. Answers (1)
Sunlight Limited intends to invest in project Y or project Z.
The following are the expected net cash flows from the projects
...(Solved)
Sunlight Limited intends to invest in project Y or project Z.
The following are the expected net cash flows from the projects
Project
Y Z
Year Sh. Sh.
0 (12,000,000) (10,000,000)
1 3,000,000 4,000,000
2 3,000,000 3,000,000
3 3,200,000 2,000,000
4 2,000,000 4,000,000
5 1,000,000 2,000,000
The company’s cost of capital is 12%
Required:
(i) Calculate the profitability index for each project.
(ii) Advise the management on the project to invest in.
Date posted: November 1, 2022. Answers (1)
With regard to sources of finance. Explain the following terms:
(i) Factoring
(ii) Business angel(Solved)
With regard to sources of finance. Explain the following terms:
(i) Factoring
(ii) Business angel
Date posted: November 1, 2022. Answers (1)