Dear Respondent

I, Avika Mungal am a master’s student, at the Durban University of Technology.

Your valuable input is required for a research study on the impact of Cash management on profitability and sustainability of small retail businesses in the Tongaat area KwaZulu-Natal. This study is undertaken to identify the current cash management practices being performed and reasons as to why certain practices are omitted.

Please assist by completing the attached questionnaire which will not take more than 15 minutes to complete.

The findings of this study would contribute towards assisting in profitability and future planning of the business.

Your participation of this study is voluntary. You may refuse to participate or withdraw from the study at any time with no negative consequence. Confidentiality and anonymity of records identifying you as a participant will be maintained by the University.

Thank you for participating.

Your assistance is greatly appreciated.

Miss Avika Mungal

Lecturer: Department of Management Accounting

Durban University of Technology

Tel: 031 - 373 5647

1-2yr

Questionnaire: (please place an (X) on the chosen option)

1. Biographical information based on the respondent:

1.1 Highest qualification? Matric Diploma Degree No qualification

1.2 Your position in the business: Owner Manager Sales rep

1.3 Duration worked in the business? 0-11months 3-5yrs more than 6 years

1.4 Do you have basic cash management knowledge? YES NO

2. Information based on the business:

2.1 Duration business is operating: 0-1 year 1-2 3-5 more than 6 years

2.2 Who handles the accounting records? Accountant owner other nobody handles it

/manager

Financial information: Strongly Agree Neutral Disagree Strongly

2.3 There are formal financial records kept

2.4 We manage our cash flow easily in the business

2.5 The business has being profitable over the past 3 months

129

3. Cash flow analysis / forecasting: Strongly

agree

Agree Neutral Disagree Strongly

disagree3.1 It is important to keep records of cash management

3.2 I have the time to manage the cash in the business

3.3 I know what a cash budget is

3.4 I draw up cash budgets for the business

3.5 I know exactly how much money is spent in the business

3.6 I know how much money comes into the

4. Sales

5. Debtor management / sell on credit

5.1 How long do your customers take to pay you?

5.2 What percentage (on average) of your debtors does not pay back their amounts owing?

1 month

5%

45 days

10%

55 days

15%

Longer than 55 days

More than 15%

130

Debtor management / sell on credit Strongly Agree Neutral Disagree Strongly

5.3 I give customers a discount if accounts are settled

5.4 I charge interest on the customers overdue account

5.5 I know what impact bad debts have on cash flow.

5.6 All my customers payback their amounts due to us

6. Stock/ inventory:

6.1 What portion of your stock is bought for cash?

Stock: Strongly

agree

Agree Neutral Disagree

6.2 I have a regular stock take

6.3 I sometimes run “out of stock” for some goods.

6.4 I have some products that don’t get sold

7. Purchases

7.1 What portion of your purchases is bought for cash? 0% - 19% 20% - 40% 41% - 60% 61% - 80% 81% - 99%

131

7.2How long do you take to pay your creditors 1 month 1,5 months 2 months longer, specify

Control of purchases / buy on credit Strongly Agree Neutral Disagree Strongly

7.3 I always have money to pay for the products I buy

7.4I get charged interest on the overdue account

7.5I get a discount if I pay my accounts within a certain

8. Financing / borrowing costs Strongly Agree Neutral Disagree Strongly

8.1 I have a bank account for my business

If the business has a bank account, answer the

8.2 I deposit my earnings in the bank daily

8.3I have taken a loan to finance my business

8.4I have cash to repay my instalments on the loan

8.5I want to take a loan but don’t qualify for one

8.6Ihave sufficient money in the business without taking

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9. Please indicate what other cash management problems faced by the business which is not covered in the questionnaire?