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A9 Read aloud | Draw Highlight QUESTION FOUR [25] Wonder Wholesalers' credit torms to Shina Stores are 30 days but Wonder Wholesalers is prepared to
A9 Read aloud | Draw Highlight QUESTION FOUR [25] Wonder Wholesalers' credit torms to Shina Stores are 30 days but Wonder Wholesalers is prepared to allow a 2%% dincount if Shina Stores pays the account within 10 days. Required: Calculate the cost (as a percentage) to Shina Stores of forgoing the discount (5) 4.2 The following information has been extracted from the financial records of Lulu Limited for the year ended 31 May 2020 R 720 000 Cash flows from operating activities Cash flows from operating activities Additions to plant and equipment Cash flows from financing activities Proceeds from shares issued (1 260 000) (1 260 000) 600 000 600 000 421 Calculate the cash balance as at 31 May 2020 if the cash balance on 31 May 2019 was R200 000 (favourable) (3) 422 Analyse the cash flows of the company (7) The monthly sales of a product sold by Molda Limited are 150 000 units. The purchase price is R16 per unit. The carrying cost of inventory amounts to 25% of the purchase price. The ordering cost is R12 per order. Calculate: 4.3.1 Annual economic order quantity (E00) 43.2 The number of orders that need to be placed annually based on the EOO (2) 4.3.3 The total ordering costs and carrying costs
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