USANDA LIMITED The financial year ended on 28 February 2021 - NSC Accounting - Question 2 - 2020 - Paper 1

For the dividends paid:

1. Use the formula:

2. Substitute the values:

3. Therefore, the dividends paid amount to R742,500.

To calculate the cash effects for financing activities:

1. Begin with proceeds from shares issued and changes in loans.
2. Calculate the total:
   • Proceeds from shares: R1,220,000
   • Change in loans: R(150,000)

Thus, cash effects for financing activities amount to: R(2,652,500).

To find the net change in cash and cash equivalents:

1. Calculate cash by taking cash opening balance and the changes:

2. Thus, the net change in cash and cash equivalents comes to R56,000.

To find the operating profit on sales percentage:

1. Use the formula:

2. Substitute the values to calculate:

3. Hence, the % operating profit on sales is 12.7%.

For the acid-test ratio:

1. Use the formula:

2. Substitute the values:

3. Therefore, the acid-test ratio is 0.16:1.

To calculate the % return on average shareholders' equity:

1. Use the formula:

2. Substitute the values:

3. Thus, the % return on average shareholders' equity (ROSH) is 11.37%.

To find the dividend payout rate:

1. Use the formula:

2. Substitute the values:

3. Therefore, the dividend payout rate is 67.6%.