Answer ALL questions. QUESTION 1 [100] (20) 1.1 REQUIRED Use the information provided below to calculate the cash conversion cycle. INFORMATION The following information was obtained from the records of Cummins Traders for 2019: Sales for the year (all credit) Credit purchases for the year Inventories on 31 December 2019 R920 000 R660 000 R18 000 Accounts receivable on 31 December 2019 R100 000 R28 000 Accounts payable on 31 December 2019 Average age of inventories 9.95 days 1.2 REQUIRED Calculate the EOQ from the information provided below. INFORMATION The annual sales of Siddle Limited is 600 000 units. The purchase price is R2 per unit. The carrying cost of inventory amounts to 25% of the purchase price. The ordering cost is R20 per order. 1.3 In order to calculate an entity's weighted average cost of capital (WACC) financial weights have to be set for each component in the firm's capital structure. The weights may be calculated as book or market value, and as historic or target figures. Explain what is meant by these four types of weights. (8) QUESTION 2 NOTE: Where present value tables are required, use tables with 4 decimal places. REQUIRED Study the information given below and answer the following questions: 2.1 Calculate the Payback period of Nik and Nak Equipment. (Answer must be expressed in years, months and days.) 2.2 Calculate the Accounting Rate of return (on average investment) of Nak Equipment (answer expressed to two decimal places). 2.3 Calculate the Net Present Value of Nik Equipment. (Round off amounts to the nearest Rand.) 2.4 Calculate the Internal Rate of Return of Nak Equipment (answer expressed to two decimal places)