FIN 3702 ASSIGNMENT 1 2021

Question 1 The correct option is 4. A firm with highly unpredictable sales revenue would best choose … financing strategy in order to minimise risk. 1. a seasonal 2. the trade-off 3. the aggressive 4. the conservative Principles of Managerial Finance, 12e (Gitman) - Chapter 14 – Working Capital Management Question 2 The correct option is 2. Once sales are forecasted, … must be generated in order to estimate a variety of operating costs. 1. a cash budget 2. a production plan 3. an operating budget 4. a pro forma statement Principles of Managerial Finance, 12e (Gitman) ; Chapter 3 - Cash Flow and Financial Planning 4 Question 3 The correct option is 3. Amount invested in the CCC/day = R 365 = R61 644 Reduction in the CCC = 70 days – 58 days = 12 days Annual saving under this measure = R61 6