Cash management exam

aeia

Cash management exam any tips?
Thank you

rvs29

I need help too, have my resit in November!

aeia

My resist is first week of November this paper is confusing me

genesta

Same chapter - same rubbish
Calculate the interest on 6.4% Treasury stock 20x4 with a current market price of $116.
The answer they give is 5.52%.

What do I miss in this task?

rvs29

@genesta to work this out you take the interest on treasury stock, divided by market price, multiplied by 100%. 6.4/116 x 100%

At least i know this answer!!

genesta

Thank you a lot.
If it is possible, where did you get this formula. There is no common logic - thats for sure.So far.

genesta

I see you are already doing exams...
PLease help me with tasks from assesment:
There is sample assesment with no logical result. The 1st sample assesment under Cash management, Level 4. So..
Per 1 - 8200 Units
Per 2 - 8500
Per 3 - 8800
Per 4 - 6100
Per 5 - 5400
Sales price 30$/unit
They receive 30% 1 month after sales and 70% after 2 months after sales.
15% of sales are received in cash. The rest - on credit bases.

What are total sales receipts for period 4 and 5???

They say:
Per 4 - 246495
Per 5 - 228045

rvs29

@genesta have you looked back over your revision/text books??

work out what needs to be received in period 4 and 5:
Period 4 = 30% of period 3 CREDIT purchases, plus 70% period 2 CREDIT purchases, plus period 4 CASH purchases

Any sales made by cash are paid IN the period of sale.

Received in period 4:
Period 3 sales = (8800*£30) = £264000
£264000 * 85% = £224400
£224400 * 30% = £67320
(the 85% is the amount of sales on credit. You do not need to included the 15% cash sales as this has already been received in the period). (the 30% is the amount of sales to be received in period 4).

Period 2 sales = 8500*£30 = £255000
£255000 * 85% = £216750
£216750 * 70% = £151725

Period 4 CASH sales will be received in that period:
6100*£30 = £183000
£183000 * 15% = £27450

Total period 4 = £67320+£151725+£27450 = £246495

Hope you can work out the same for period 5

genesta

THANK YOU!!!!!

Calculations I do easy, but as turns, the sentence ... The rest - on credit bases.... was misleading me.