JANTJES LIMITED The information relates to the financial year ended 28 February 2022 - NSC Accounting - Question 2 - 2022 - Paper 1

The Fixed assets purchased is calculated as:

$7,988,000 - 600,000 - 298,000 - 36,124 = 8,746,500$

This calculation accounts for disposals and the present values shown in the accounts.

Dividends paid can be found from the changes in equity:

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

This reflects all cash movements in dividends within the accounting year.

The decrease in loan amount is calculated as:

$456,000 - 216,000 = 240,000$

This shows the net repayment on the loan over the fiscal year.

To complete the NET CHANGE IN CASH AND CASH EQUIVALENTS:

Open the balance of cash is $129,000 + 5,000 = 134,000$

And close the balance as: $125,000 + 5,000 = 130,000$.

To calculate the % mark-up achieved:

\text{% mark-up} = \frac{5,400,000 - 2,700,000}{2,700,000} \times 100 = 75\%

This indicates a strong profit margin relative to the costs.

The Acid-test ratio is calculated using:

$\text{Acid-test ratio} = \frac{(1,323,000 - 514,500)}{735,000} = 1.1$.

This formula presents the company's short-term liquidity position.

The Net asset value per share (NAV) is calculated as follows:

$\text{NAV} = \frac{8,840,700}{100} = 768.8 \, \text{cents}$.

This gives shareholders an understanding of their equity value per share.

To calculate the % return on average shareholders' equity (ROSHE):

$\text{ROSHE} = \frac{(670,000 - 600,000)}{670,000} \times 100 = 10\%$.

This shows how effectively the company is utilizing its equity to generate profits.