Q:

a) Determine on which date firm discount period and credit period ends for the purchases made and invoices date 25 Nov under each of the following credit terms. .i)net 60 EOM, ii) net 30 date of invoice. (marks 2)

b) Calculate the cost of giving up discount under following terms (marks 2) i) 3/10 net 40 ii) 5/15 eom 55

c) Garrett industries turn over its inventory 6 times each year; It has an average collection period of 45 days and an average payment period of 30 days. The firms annual operating cycle investment is $ 3 million. Assume 360 day year Calculate (marks 6) a. firms operating cycle,

b. cash conversion cycle,

c. its daily cash operating expenditure,

d. the amount of resources needed to support its CCC.