QUESTION 30

The 80% cash flow collected

two months after the sales have taken place for June, July, and August equals …

respectively.

a.     R340 000, R340 000, and R550

000

b.    R390 000, R390 000, and R580

000

c.     R410 000, R410 000, and R610

000

d.     R480 000, R480 000, and R640

000

FOR QUESTIONS 29 TO 37, REFER TO

THE FOLLOWING CASE STUDY:

The

Bookkeeper of

The following information

has been gathered and passed on to you:

The company sells CCTV

camera supplies for cash and on credit, leading to the constant cash flows of

cash sales and payments from debtors, with occasional large inflows from direct

sales. It is indicated

Sales are split evenly

between cash and credit. The ageing report on the accounting system of the

company gives the following breakdown of collections from debtors:

• 20% one month after the sales have taken

  place

• 80% two months after the sales have taken place
• No bad debts.

• The sales recorded for both April 2025 and May 2025 were

  R600 000, respectively.

• Sales are expected to increase to R800 000 in June 2025 and to

  remain at this level until at least August 2025.

The company needs to make a

cash payment of R1 700 000 to a contractor for an upgrade of the company’s

systems in July.

Variable costs related to

sales equal 30% of the previous month's total sales, and the company has fixed

expenses estimated at R200,000 every month. The company had a cash balance of

R100 000 at the end of May 2025.

Fruits (Pty) Ltd

uses a R1 000 000 revolving credit facility

to finance cash shortfalls, which costs 14% per month and on which interest is

paid on the closing balance of the previous month.

REQUIRED:

Compile a cash budget for Fruits

(Pty) Ltd. for June to August 2025 and answer questions 29 to 36.

 QUESTION 29

The 20% cash flow collected

one month after the sales have taken place for June, July, and August equals …

respectively.

1. R110 000,

   R130 000, and R130 000

2. R120 000,

   R160 000, and R160 000

3. R130 000,

   R160 000, and R160 000

4. R120 000,

   R130 000, and R130 000

QUESTION 28

The …

is a process of obtaining the business’s cash flow estimates through the usage

of various cash forecasting models.

a.   

b.   

c.    

d.   

QUESTION

27

Which of the following statements correctly describes

the future contracts?

a.   

They are tailor-made instruments that are traded over

the formal exchange.

b.   

They are standardised financial instruments that are

traded over the formal exchange.

c.    

Because of their nature, it can be concluded that they

are liquid and have a very low credit risk

d.   

Because they are tailor-made, it is difficult to get

out of the contract once they have been established.

1.       a and b

2.       b and c

3.       a and c

4.       c and d

Complete

the following sentence by choosing the correct combination below:

The …

is a bill of exchange issued by … for the purpose of … .

a.   

negotiable

certificate of deposit (NCDs); South African Reserve Bank; funding

previously

issued (NCDs)

b.   

repurchase

agreement; government; raising short-term funds

c.    

commercial

paper; companies; financing working capital

d.   

banker

acceptance; bank; financing outstanding trade receivables

QUESTION 25

Which of the following statements correctly describes

the characteristics of interest rate swaps?

a.   

Because interest rate swaps

are backed by a formal exchange, credit risk is low.

b.   

It is an agreement between two parties

to exchange future cash flows (based on a notional principal amount) at

specified times in the future. according to certain predetermined rules.

c.    

It is an agreement between two parties

to exchange future notional principal amounts at specified times in the future.

d.   

The interest rate swap strategy becomes

an extremely effective tool for two parties for hedging interest rate risk.

1.    a and c

2.    a and b

3.    b and c

4.    b and d

QUESTION

24

Which

of the following statements is incorrect?

a.   

The

actual return is higher than the discount rate because the discount rate is

based on the nominal value minus the discount rate.

b.    The y

ield to maturity is the

overall interest rate earned by an investor who buys a bond at the market price

c.    

The

yield of a bond is based on the nominal value less the discount amount.

d.   

A

bond's price moves inversely to its yield to maturity rate.

QUESTION 23                                                                                                    

Based on the above article, it can

be concluded that Mr Douglas executed the task(s) of the … office/s.

 a.   

back

and middle

b.   

front

and middle

c.    

front

and back

d.   

back

FOR QUESTIONS 22, REFER TO THE FOLLOWING

INFORMATION:

The forecasts of Madiba Ltd's cash flow indicate that there will

be a cash deficit of R900,100 in June 2025. In financing this shortage, the

company will issue a 90-day banker’s acceptance bill, which its bank will

guarantee by accepting it, and the bill will then be discounted in the market

with the relevant discount rate. The company will receive R968 000 in exchange

for the bill, which will require that the company pay the nominal amount of R1

000 000 within 90 days’ time.

QUESTION 22

The cost of the bankers’ acceptance for the company (which is a

yield to the bank) is ….

a.    6,34%

b.    7.73%

c.     8.10%

d.    9.60%

QUESTION 21

Which of the

following statements is incorrect?

a.   

b.   

A

treasurer is also expected to oversee the overall functioning of all functional

areas and compliance with policies and set standards.

c.    

A centralised treasury has more autonomy that enables individuals within

each branch to make quick decisions.

d.   

Control

refers to a process in which the board of directors establishes treasury

policies and monitors their implementation.

1.   

a and

b

2.   

b and

c

3.   

c and

d

4.   

a and

d