March 2020. 10. Other cash operating expenses are expected to amount to R30 000 for January 2020 and are expected to increase by 10% from 1 February 2020. 11. Rates for 2020 are expected to be R15000 and will be paid in January 2020. 12 Rentals of R30 000 per month are paid monthly. Rentals are expected to increase 10% per annum with effect from 1 January 2020. QUESTION 5 (20 Marks) 5.1 After completing your cash budget for a manufacturing company, you project a cash deficit. Elaborate on the actions that you would embark on as a means of rectifying the cash shortages. ( 5 marks) 5.2 You are financial advisor and have been contacted by the Board of Bidcore Limited. They are about to undertake R500 million in capital projects but are unsure of the cost of capital that should be used to evaluate these projects. They have provided you with the following information and have requested that you advise them on the Weighted Average Cost of Capital that the company should use. The ordinary shares are currently trading at R2 each and the preference shares current market price is R6 each. The interest rate on the debt capital is 10%. The company tax rate is 28% Extract of Statement of Financial Position as at 31 December 2019 Note: - Inventories amounted to R264 000 on 31 December 2019 and R226 000 on 31 December 2018. Credit terms to debtors are 30 days. 12 REQURED Use the information given below to calculate the: 2.2.1 Quantity that should be ordered each time that will keep the both the costs associated with purchasing and the cost of holding inventory as low as possible. (3 marks) (3 marks) 2.2 .2 Re-order point. INFORMATION The annual sales of a product sold by Umhlai Limited is 3600000 units. The purchase price is R12 per unit. The carrying cost of inventory amounts to 25% of the purchase price. The ordering cost is R12 per order. It takes the suppliers 10 days to execute an order. Assume that the business operates for 240 days in a year