• You can revisit questions and change your answers at any time during the exam.
• The only permitted characters for numerical answers are:
• Numbers
• One full stop as a decimal point if required
• One minus symbol at the front of the figure if the answer is negative.

For example: -10234.35

No other characters, including commas, are accepted.

## Navigating between questions

• Click Next Button to move to the next question.
• Click Previous Button to move back to the previous question.
• Click on a question number from the Exam Progress Details panel (see next page) to move directly to that question.
• A message will be displayed when you click to move away from a question which has been partially attempted. You can choose to stay on the question and review your answer(s) or continue.
• When reviewing your answer(s) for partially attempted questions ensure you read any message displayed in red text below the question in Section A or below the question
part(s) in Section B
.

KXP Co (12/12, amended)

KXP Co is an e-business which trades solely over the internet. In the last year the company had sales of $15m. All sales were on 30 days' credit to commercial customers. Extracts from the company's most recent statement of financial position relating to working capital are as follows:$'000

KXP Co currently orders 15,000 units per month of Product Z, demand for which is constant. There is only one supplier of Product Z and the cost of Product Z purchases over the last year was $540,000. The supplier has offered a 2% discount for orders of Product Z of 30,000 units or more. Each order costs KXP Co$150 to place and the holding cost is 24 cents per unit per year. KXP Co has an overdraft facility charging interest of 6% per year.