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5.1 Three financial statements are provided as options in which each of the following items would appear - NSC Accounting - Question 5 - 2019 - Paper 1
Question 5
5.1 Three financial statements are provided as options in which each of the following items would appear. Choose the financial statement and write only the letter (A... show full transcript
Worked Solution & Example Answer:5.1 Three financial statements are provided as options in which each of the following items would appear - NSC Accounting - Question 5 - 2019 - Paper 1
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5.2.1 Calculate the following figures for the 2019 Cash Flow Statement:
Answer
To calculate the figures:
- Income tax paid: Refer to the income tax expense indicated in the financial statements.
- Dividends paid: Sum the dividends declared and paid to shareholders during the year.
- Proceeds of shares issued: Use the figures indicated in the equity section showing new shares issued.
- Fixed assets purchased: Account for capital expenditures noted during the financial year.
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5.2.2 Calculate financial indicators for the year ended 28 February 2019:
Answer
To calculate the financial indicators:
- % Operating Profit on Sales: This can be calculated using the formula: ext{Operating Profit} = rac{ ext{Operating Income}}{ ext{Sales}} imes 100
- Net Asset Value per Share: Compute using: ext{Net Asset Value per Share} = rac{ ext{Total Assets - Total Liabilities}}{ ext{Number of Shares Outstanding}}
- Debt-Equity Ratio: Derive using: ext{Debt-Equity Ratio} = rac{ ext{Total Liabilities}}{ ext{Shareholders' Equity}}