Purchasing and Financing 2024
Purchasing- and Financial Management For 2nd year CATS learners. Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
Purchasing- and Financial Management
For 2nd year CATS learners.
Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
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INDIVIDUAL ASSIGNMENT:<br />
You intend to buy government bonds. You are guaranteed that in 10 years’ time an<br />
amount of R200 500 is paid out to you. The constant interest rate is 10 %. How much<br />
money would you need now to buy the bonds?<br />
12. FORMATIVE ASSESSMENT<br />
CASE STUDY<br />
Your nephew Tshepo is finishing matric this year <strong>and</strong> plans to study a 3-year B. Com at<br />
Wits next year. He will use a R90 000 study loan to pay for his studies. He only must repay<br />
the interest on the loan while he is studying. Once he completes his studies, he will have<br />
to repay the loan in two years.<br />
Question 1<br />
Calculate the following if he negotiates a fixed 15% interest rate for the full term:<br />
7.1 The Cost of the Finance<br />
7.2 The Monthly Repayment while he is studying.<br />
7.3 The Monthly repayment once his studies are completed.<br />
Question 2<br />
Tshepo’s father John realises that they won’t be able to repay the monthly loan amount<br />
from his salary. He decides to open a moving tuck shop, which will visit several local<br />
construction sites, to help him pay for his son’s studies.<br />
• He employs 1 person at R1 500-00 per month.<br />
• He buys a small, second h<strong>and</strong>, Nissan 1400 bakkie with canopy, to operate the tuck<br />
shop from, for R30 000 from a friend.<br />
• He expects sales of R10 000 in month one <strong>and</strong> a 10% monthly increase in sales after<br />
that for the first six months.<br />
• His cost of sales is expected to be about 40% of sales.<br />
• His running cost is estimated at R1 000 per month.<br />
• He sells for cash only but has a month to pay his suppliers.<br />
• He borrows R30 000 from the bank to buy the bakkie <strong>and</strong> must pay back R1 200 per<br />
month, starting in month 2.<br />
Complete a cash flow statement for the first 3 months.<br />
Question 3<br />
John realises that studies are very expensive <strong>and</strong> that a huge part of Tshepo’s salary will<br />
be used towards the repayment of the loan, once he starts working. He also realises that<br />
the profit from the tuck shop is a bit more than he anticipated <strong>and</strong> is determined to invest<br />
some of the profits so that they will be able to pay cash for Tshepo’s younger brother<br />
Sabelo first year of study.<br />
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