correct answer only

27. A business has produced the following working capital data: Working capital as at end Period 1 Period 2 Average stock turnover 28 days 24 days Average debtors' repayment period 32 days 30 days Average creditors' repayment period 38 days 36 days The business cash operating cycle has improved / worsened (from period I to period 2) by 1. 4 days (improvement) b. No change c. 4 days (worsened) d. 8 days (improvement) 28. A business has current assets valued at 125,000 and current liabilities valued at 80,000. Working capital is aggressively financed using short-term bank debt with an annual interest rate of 16%. The annual cost of working capital asset financing, therefore, is: a. 12,800 b. 14.400 C. 20,000 d. 7,200 29. At production levels above current capacity: a. The selling price will be increased in-line with diminishing demand b. The value for fixed costs values and the rates for variable costs can no longer be relied upon c. The fixed costs will increase by step at a rate in excess of 15% d. The variable cost per unit will fall by 5% because of the bulk discounts available on materials 30. Which one of the following describes financial planning a. A strategic plan clearly identifying the business long-term production objectives and the approaches to their achievement (.e. executive decision-making and tactical positioning.) b. The application of computer resources (.e. software and hardware) to design an overall forecast for discussion and implementation through the business interlocking operating functions. 11 c. The preparation of a forecast describing future business objectives (expectation) expressed in financial terms profits and cash flows. d. The extracted cost of production resources from the previous period's budget plans and on-going management negotiations with customers, suppliers and employees