Refer to Information A. Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note. Calculate the following amounts for the 2022 Cash Flow Statement: - Fixed assets purchased - Dividends paid - Decrease in loan Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement. Calculate the following financial indicators on 28 February 2022: - % mark-up achieved - Acid-test ratio - Net asset value per share (NAV) - % return on average shareholders' equity (ROShe)

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Refer to Information A - NSC Accounting - Question 2 - 2022 - Paper 1

Question 2

Refer to Information A. Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note. Calculate the following amounts for the 2022 Cash Flow Sta... show full transcript

Worked Solution & Example Answer:Refer to Information A - NSC Accounting - Question 2 - 2022 - Paper 1

Step 1

Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note

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Answer

Carrying value of vehicles on 1 March 2021:

The carrying value is calculated as:

$2,350,000 - 840,000 = 1,510,000$
1. Total depreciation on equipment:
Using the formula:

$ext{Depreciation} = (28,000 imes 10\\%) + (36,124 \\text{ (old)}) = 27,999$

So, total depreciation is 36,124.
1. Carrying value of the vehicle sold:
This is calculated using:

$80,000 - (200 imes 200) = 12,000$

Thus, the carrying value is 68,000.

Step 2

Calculate the following amounts for the 2022 Cash Flow Statement

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Answer

Fixed assets purchased:

The formula for fixed assets purchased is:

$7,988,000 - 60,000 - 298,000 - 36,124 = 8,746,500$

This results in 1,160,624.
1. Dividends paid:
Using:

$180,000 + 552,000 - 264,500 = 468,000$

The dividends paid are 468,000.
1. Decrease in loan:
Calculating:

$Payments - Interest - Total = 456,000 - 216,000 = 240,000$

The decrease in loan is 240,000.

Step 3

Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement

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Answer

The net change can be calculated as:

$Opening balance + Cash inflows - Cash outflows = 129,000 + 5,000 - (125,000 + 5,000) = 254,000$

Thus, the net change in cash and cash equivalents is 254,000.

Step 4

Calculate the following financial indicators on 28 February 2022

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Answer

% mark-up achieved:

The calculation is:

$\frac{5,400,000 - 2,700,000}{2,700,000} \times 100 = 75\%$
1. Acid-test ratio:
This is calculated as:

$\frac{1,323,000 - 514,500}{735,000} = 1.1$
1. Net asset value per share (NAV):
Here, the formula:

$\frac{8,840,700}{100} = 768.68 \\$**(cents)**$
1. % return on average shareholders' equity (ROSE):
The calculation is:

$\frac{(670,000 - 579,000)}{600,000} \times 100 = 15.1675\%$

Refer to Information A - NSC Accounting - Question 2 - 2022 - Paper 1

Worked Solution & Example Answer:Refer to Information A - NSC Accounting - Question 2 - 2022 - Paper 1

Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note

Calculate the following amounts for the 2022 Cash Flow Statement

Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement

Calculate the following financial indicators on 28 February 2022

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