The credit analyst for Mazibuko Limited has established Credit payment period for raw materials Raw material delivery to

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The Credit Analyst For Mazibuko Limited Has Established Credit Payment Period For Raw Materials Raw Material Delivery To 1 (124.44 KiB) Viewed 37 times

The credit analyst for Mazibuko Limited has established Credit payment period for raw materials Raw material delivery to completed goods • Debtors collection period • Completed goods to credit sales Required: Calculate the following: the following data relating to the working capital cycle of the firm: 30 days 50 days Direct stockholding costs Lead time Safety inventory 80 days 20 days 3.1.1 The cash conversion cycle 3.1.2 The period during which financing will be required Discuss four measures that can be implemented to reduce the period for which financing is required 3.1.3 3.2 Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other retailers. The company hired you as its management accountant two months ago. Recently, you have been tasked with instituting measures to reduce the company's rapidly increasing costs. After some research, you have come to the realization that the company does not make use of Economic Order Quantity (EOQ) and you believe that this will be a good place to start your cost-reduction journey. You have therefore rounded up the following information regarding one of its products: 2 650 units Weekly demand Purchase price per unit R180 Cost of placing an order R230 Insurance 10% of the purchase price R17 per unit 2 weeks 1 week's demand (2 marks) (1 mark) (4 marks) Required: 3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number (5 marks) 3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number 3.2.3 Calculate the reorder point for the company (4 marks) (4 marks)