Runcome Runit (Pty) Ltd (RuRu) is a wholesaler that sells running shoes to the public. The shoes sold by RuRu are of a very high standard and have long-lasting quality. RuRu has a high stock turnover ratio due to the popularity of its brands and very compatible prices. RuRu’s top-selling running shoes are the Nika. Adide, Pume, and Reebak brands. Mr. Wayde Runner, who is the general manager, together with his leadership team is considering investing in a new machine that can create unique colour shades on selected running shoes in order to increase sales. RuRu’s financial standing with RuRu Bank is in good standing and they, therefore, decided to request a loan to finance the new machine.
The spreadsheet below was prepared to assist with the loan application:
OPEN PDF HERE
The following additional information is also available to you:
a) The code for each running shoe is made up of the brand, the range followed by a dash and stock category code
b) The shoes are provided to you at a cost price exclusive of Value Added Tax (VAT) The VAT percentage is 15% (refer to cell B3)
c) The sales price of the training shoes is calculated at a Mark-up percentage of 35% (refer to cell B4) on the cost price
d) An annual interest rate of 18% (refer to cell B9) will be applicable over the 3 year period.
e) A monthly installment of R5965 15 is paid at the end of every month (refer to cell B11). over a period of 3 years (refer to cell B10)
Required:
Mr. Wayde Runner has approached you as the spreadsheet Guru to assist him in answering the following questions.
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