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FOR A a) b) c) ho a negative cash cmversOn cycle arses (2 muks) FIN222 Ltd m.'rchases terms Of 1/10. net 35. If FIN222 Ltd
FOR A
a) b) c) ho" a negative cash cmversOn cycle arses (2 muks) FIN222 Ltd m.'rchases terms Of 1/10. net 35. If FIN222 Ltd ches to take he discant offered. it must citain a bank ln to afford n. WES bank has quoted APR ot on borrowed funds. (3 marks) FIN222 Ltd passes the discaont perm much cost it incur n an annud term? Calculate me EAR for WES bank. What FIN222 Ltd do? use he hfcrmaticn to answer the West&'s. Cost of p rofl general. admn e enses erabng profit Interest expense prom tax Taxes Acccnnts receivable Inven current assets Net plant. property And u ment T assets HanKtx* Mot Copatiat Statement S Fcrthe arsencl 31 December 2018 75,000 SIO.ooo $3,000 $1,800 $1,260 Capatim Balance sheet (in S milhms) F Or the arsend 31 December 2019 100,000 85,000 15.000 E 000 1.100 1.470 $3,430 ,oeo 2.800 6,200 $12,080 $23,087 $35 167 2019 E. 100 6.900 6.600 $19,600 $20,098 $39 698 Liabili Accu nt payabk Wes ble Accruals Total current liabilities Lmg-term debt Total liabiliies Issued equity Retained earnin Total equ Total liabilty and 3,600 1.180 5,600 $10,380 E.soo 316880 32.735 $15,552 $18,287 3351167 the cash cycle (CCC) for HanKoc* bdh 2018 and 2019. A1 eBe how this change affect fa cash? 2019 1.250 S12.061 $7. ooo $19 061 S2.73S S17S02 20.637 539.698 (2 mks) (1 mark) iii) 's suppliers Offer terms Of net 25. 15 Han Kcck d1g a job Of managing its payee? Why Why
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