You are provided with information about Vooma Limited for the past two financial years ended 30 June - NSC Accounting - Question 4 - 2018 - Paper 1

The Acid-test ratio can be calculated using the formula:

Using the given data:

• Current Assets: 2,427,000
• Inventories: 1,244,000
• Current Liabilities: 365,000

Substituting the values:

To find the % return on shareholders' equity, we will use the formula:

From the data provided:

• Net Income: 951,500
• Shareholders' Equity: 1,191,000

Thus,

The Change in Investments can be computed as:

$\text{Change in Investments} = \text{Ending Investments} - \text{Beginning Investments}$.

Let's assume the values are provided; calculate based on the respective values.

Income tax paid can be calculated based on the financial records:

$\text{Income Tax Paid} = \text{Total Tax} - \text{Tax Recieved}$ Substituting the appropriate values will give you the result.

For the fixed assets sold at carrying value, use the formula:

$\text{Fixed Assets Sold} = \text{Carrying Value at Sale}$.

Insert the carrying values from the financial statements to compute.

The directors' satisfaction stems from the substantial increase in cash flow since 1 July 2016. The strategic implementation of financial management has led to a more robust cash position, allowing for increased operational capacity and reduced dependency on overdrafts, resulting in enhanced financial stability.

Three decisions taken include:

1. Issued shares (rights issue) to raise capital.
2. Sale of assets worth R305,000 to reduce debt.
3. Acquisition of a loan for expansion.
   These decisions affected capital employed by increasing equity and affected financial gearing by reducing overall liabilities.

One decision not repeated in 2018 was the issuance of shares. A possible reason could be a strategic shift towards managing current investment without further dilution of existing shareholder equity.

Total interim dividends paid can be calculated using:

Total dividends can be calculated as:

To calculate the minimum number of additional shares Dudu should have bought, use:

$\text{New shares offered} = \left( \frac{2}{5} \times \text{Shares Owned} \right)$ Determine the potential number of shares she could have purchased and compare with her current holdings.