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The working capital policy of any business entity must address the twin issues of the level of current assets and the manner in which these current assets are financed.
Required:
In relation to the above statement, explain how business entities can adopt aggressive, moderate and conservative working capital policies.
Date posted:
April 28, 2022
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The following data relate to Store ltd, a manufacturing company.
Date posted:
April 28, 2022
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You are given the following financial statement information for Moto Ltd. for the year ended 31 December 2010:
Required;
The operating and cash conversion cycles assuming that the year has 360 days.
Date posted:
April 28, 2022
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Baren Ltd projects that cash outlays of Sh.45 million will occur uniformly throughout the year.
The company plans to meet its cash requirements by selling marketable securities from its
portfolio. The expected return from the company's marketable securities is 8 per cent per annum,
and the cost per transaction of converting securities into cash is Sh.30.
Required
(i) The optimal cash balance
(ii) The average cash balance
(iii) The number of transfers between cash and marketable securities per year.
Date posted:
April 28, 2022
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The projected monthly working capital requirements for Chasimba Ltd. for the year ending 31 December 2012 is as follows:
Date posted:
April 28, 2022
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Bahari Ltd. has the standard deviation of its daily net cash flow estimated at Sh.68, 250. The company
maintains minimum cash balance Sh.500, 000. The company's transaction cost is Sh.360 from the
money marker. The rate interest for the marketable securities is 9.865% per annum. The company
uses the Miller-Oir model to set its target cash balance.
Assume 365 days a year.
Required:
(i) The company's return point.
(ii) Upper cash limit.
(iii) The average cash balance.
Date posted:
April 28, 2022
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The following information relates to the current trading operations of Dindiri Ltd.
In an effort to improve the liquidity position of the company, the management proposed the following
strategies aimed at reducing its operating cycle.
Strategy A
To offer a 2% cash discount to customers who pay their accounts within 10 days. This will have the
following effects:
1. 50% of the cred it customers and all cash customer, will take advantage of the discount.
2. Annual sales the percentage of credit sales and the contribution to sales ratio will not change.
3. There will be savings in debt collection expenses of Sh 4,125,000 per month.
4. Bad debts will decrease to 20% of total credit sales.
5. The average collection period will be reduced to 32 days.
Strategy B
Contract the services of a factor at a cost of 2% of total credit sales while advancing Dindiri Ltd. 90%
of total credit sales invoiced at the end of each month at an interest rate of 1.5% per month.
The effects of this strategy will be:
1. No change in the level of annual sales proportion of cred it sales and contribution margin ratio.
2. Savings on debt administration expenses of Sh.2, 100,000 per month will result.
3. All bad debt losses will be eliminated.
4. The average collection period will drop to 20 days.
Required:
(i) Evaluate the financial benefits and Costs of each strategy (assume a 60 day year)
(ii) Advise the management of Dindiri Ltd. on the viable strategy to implement.
Date posted:
April 28, 2022
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The current credit terms of Fredcom Ltd. are 2/15- net 45 days. The company's total annual sales are Sh.200 million with an average collection period of 30 days. Variable cost is 80% of the annual sales. 50% of customers take advantage of the current discount. The company is considering relaxing its discount terms to 3/15 net 45 days. This relaxation of discount terms is expected to increase annual sales by Sh.10 million, reduce average collection period to 27 days and increase the proportion of customers who will take advantage of the discount to 60%. The company's cost of capital is 12%.
Corporate tax rate is 30%.
Assume 360 days in a year.
Required:
Advise the management of Fredcom Ltd. on whether to relax its discount terms.
Date posted:
April 28, 2022
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What is an EDF scheduler? What is its advantage over a rate monotic scheduler?
Date posted:
April 26, 2022
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The traditional UNIX scheduler is a priority-based round robin scheduler (also called a
multi-level round robin scheduler). How does the scheduler go about favouring I/O bound jobs
over long-running CPU-bound jobs?
Date posted:
April 26, 2022
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Describe round robin scheduling. What is the parameter associated with the scheduler? What is the issue in choosing the parameter?
Date posted:
April 26, 2022
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Why is it generally correct to favour I/O bound processes over CPU-bound processes?
Date posted:
April 26, 2022
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Name four disk-arm scheduling algorithms. Outline the basic algorithm for each
Date posted:
April 26, 2022
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What is disk interleaving? What problem is it trying to solve?
Date posted:
April 26, 2022
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Explain how the producer-consumer problem is relevant to operating system I/O
Date posted:
April 26, 2022
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Compare I/O based on polling with interrupt-driven I/O. In what situation would you favour one technique over the other?
Date posted:
April 26, 2022
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Device controllers are generally becoming more complex in the functionality they provide
(e.g. think about the difference between implementing a serial port with a flip-flop controlled
by the CPU and a multi-gigabit network adapter with the TCP/IP stack on the card itself).
What effect might this have on the operating system and system performance?
Date posted:
April 26, 2022
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Describe buffering in the I/O subsystem of an operating system. Give reasons why it is
required, and give a case where it is an advantage, and a case where it is a disadvantage
Date posted:
April 26, 2022
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Name and describe four page replacement algorithms. Critically compare them with each other
Date posted:
April 26, 2022
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Describe two virtual memory page fetch policies. Which is less common in practice? Why?
Date posted:
April 26, 2022
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Enumerate some pros and cons for increasing the page size
Date posted:
April 26, 2022
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What is thrashing? How might it be detected? How might one recover from it once detected?
Date posted:
April 26, 2022
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How does page size of a particular architecture affect working set size?
Date posted:
April 26, 2022
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What is the working set of a process?
Date posted:
April 26, 2022
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What are temporal locality and spatial locality?
Date posted:
April 26, 2022
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What is an inverted page table? How does it compare to a two-level page table?
Date posted:
April 26, 2022
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Describe a two-level page table? How does it compare to a simple page table array?
Date posted:
April 26, 2022
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Some TLBs support address space identifiers (ASIDS), why?
Date posted:
April 26, 2022
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Describe segmentation-based virtual memory. You should consider the components of a
memory address, the segment table and its contents, and how the final physical address is
formed in your answer
Date posted:
April 26, 2022
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Give some advantages of a system with page-based virtual memory compared to a simply system with base-limit registers that implements swapping
Date posted:
April 26, 2022