Read the following case study and answer the questions. SUNTIDELMIEDS PLANS FOR WORKING CAPIAL AND CAPTALL BUDGEING Sunide Limited is a secondary sector entity that commenced operabona during 2021 manulacturing Product Zap. Some important informaticn pertaring to 2021 is as folow: The total sales for the year amounted to R6624000, of which 50% was on credit. Credi purchases for the year totalled R2 376000 . The satement of financial positon as at 31 December 2021 refected balances of R64 800, R350 000 and R100 800 for inventories, debtors and creditors respectively. The average age of inventonies was calculated to be 18 ciays. During the first quarter of 2022 Suntide Limited commenced with ins planning process for 2023 . The following budgeted information was obtained. Suntide Limised intends purchasing 25000 components per month at R10 per unit to produce Product Zap. The coor of placing an order is R20 and the annual carrying coot per component is F0.75. The lead time for the delivery of an coder is 12 days. It is estimased that the number of workdays for 2023 will be 240 . The credt terms of the supplier for the components are 30 days but a discount of RT 500 will be granted it the monthly account is setled wthin 12 disys. Suntide Limited intends invecting in a project during 2023. The project is expected to cost R2000000 with a four-year useful life, and no residual value. Depreciation is estimated at F500 000 per yes. The project is expected to generate net cash flows of R700 000 for 2023 . The net cash flows are expected to increase by 10% each year thereaffee. The desired rate of retum by the company =15%. Read the following case study and answer the questions. SUNTIDELMIEDS PLANS FOR WORKING CAPIAL AND CAPTALL BUDGEING Sunide Limited is a secondary sector entity that commenced operabona during 2021 manulacturing Product Zap. Some important informaticn pertaring to 2021 is as folow: The total sales for the year amounted to R6624000, of which 50% was on credit. Credi purchases for the year totalled R2 376000 . The satement of financial positon as at 31 December 2021 refected balances of R64 800, R350 000 and R100 800 for inventories, debtors and creditors respectively. The average age of inventonies was calculated to be 18 ciays. During the first quarter of 2022 Suntide Limited commenced with ins planning process for 2023 . The following budgeted information was obtained. Suntide Limised intends purchasing 25000 components per month at R10 per unit to produce Product Zap. The coor of placing an order is R20 and the annual carrying coot per component is F0.75. The lead time for the delivery of an coder is 12 days. It is estimased that the number of workdays for 2023 will be 240 . The credt terms of the supplier for the components are 30 days but a discount of RT 500 will be granted it the monthly account is setled wthin 12 disys. Suntide Limited intends invecting in a project during 2023. The project is expected to cost R2000000 with a four-year useful life, and no residual value. Depreciation is estimated at F500 000 per yes. The project is expected to generate net cash flows of R700 000 for 2023 . The net cash flows are expected to increase by 10% each year thereaffee. The desired rate of retum by the company =15%
