Question
Question 3 (a) Kesuma Agih Bhd.s total sales for the year ended 31 December 2007 was RM10.6 million. The annual credit sales amounted to 70%
Question 3
(a) Kesuma Agih Bhd.s total sales for the year ended 31 December 2007 was RM10.6 million. The annual credit sales amounted to 70% of the total annual sales. The outstanding balances of accounts receivables for the year were 30% of the total annual credit sales. The inventory turnover period shows that the company took 62 days to convert the raw material into finished goods and to sell the goods to customers. The outstanding payables were RM1.3 million, with annual purchases of RM4 million.
Calculate the following:
(i) Receivables collection period.
(ii) Payables payment period.
(iii) Working capital cycle
(b) Calculate the amount to be paid by Hanna every year on a loan of 8 years that she took today. The bank will charge her 4% interest to be compounded annually on a loan of RM15,000.
(c) Consider these situations separately:
(i) Calculate the simple interest rate (%) on a principle of RM18,000 after 3 years, if the total interest is RM800.
(ii) Determine the total amount accumulated on an investment of RM3,400 in an account that pays 4.7% simple interest after 16 years.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started