Choose a description in COLUMN B that matches the user of financial statements in COLUMN A - NSC Accounting - Question 5 - 2018 - Paper 1
Question 5
Choose a description in COLUMN B that matches the user of financial statements in COLUMN A. Write only the letters (A to D) next to the question numbers (5.1.1 to 5.... show full transcript
Worked Solution & Example Answer:Choose a description in COLUMN B that matches the user of financial statements in COLUMN A - NSC Accounting - Question 5 - 2018 - Paper 1
Step 1
5.1.1 Trade unions
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Answer
C
Step 2
5.1.2 SARS
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Answer
D
Step 3
5.1.3 Shareholders
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Answer
A
Step 4
5.1.4 Directors
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Answer
B
Step 5
5.2.1 Refer to Information A.
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Answer
To calculate the missing amounts denoted by (a) to (d) on the Fixed Asset Note, start by collecting relevant data from the provided financial statement. For each item:
(a) Contribution from the asset sale = R 1 936 000
(b) Depreciation to be calculated as per the policy = R 955 000
(c) The net asset value must be calculated accordingly from totals and adjustments.
(d) Additional adjustments should reflect overall value = R 98 000
Step 6
5.2.2 Calculate the net profit after income tax on 28 February 2018.
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Answer
Net profit after tax = R 667 800, calculated from total earnings adjusted for tax liabilities.
Step 7
5.2.3 Calculate the following for the Cash Flow Statement:
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Dividends paid = R 376 000, Funds used to repurchase shares = R 960 000, Proceeds from shares issued = R 1 640 000, all calculated via appropriate accounting principles and adjustments.
Step 8
5.2.4 Complete the section for Cash and Cash Equivalents in the Cash Flow Statement.
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Net change in cash and cash equivalents is R 146 000, as reflected in the workings; this includes both opening and closing cash balances.
Step 9
5.2.5 Calculate the following financial indicators on 28 February 2018:
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Acid-test ratio = 1.3:1, Debt-equity ratio = 0.2:1, Return on shareholders' equity = 10.5%, calculated using the respective financial figures and ratios from provided data.
