1.1 REQUIRED Use the information provided below to calculate the cost to Umhlali Stores (as a percentage) of not accepting the discount. (Assume a 365-day year.) (5) INFORMATION Jehcon Manufacturers credit terms to Umhlali Stores are 60 days but the manufacturer is prepared to allow a 2.5% rebate if Umhlali Stores pays the account within 10 days.

1.2 Use the information given below to calculate the:

1.2.1 EOQ (4)

1.2.2 Reorder point (4) INFORMATION Gem Enterprises intends purchasing 7 200 units of product Nutri per month during 2021 at R30 per unit. The following additional information is available: Ordering cost Stock holding cost Lead time for delivery of an order Workdays for 2021 R30 per order 10% of the purchase price 10 days 250 days

1.3 REQUIRED Use the information provided below to calculate the cash conversion cycle. (Assume a 365-day year.) (7)

INFORMATION The following information was obtained from the records of Coastal Traders for 2019:

Credit sales for the year R1 380 000 Credit purchases for the year R990 000 Inventories on 31 December 2019 R27 000 Amount owing by debtors on 31 December 2019 R150 000 Amount owing to creditors on 31 December 2019 R42 000 Average age of inventories 15 days