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

To calculate total depreciation on equipment, apply the formula:

Total depreciation = (Cost x Depreciation rate)

For the equipment:

• Old cost = R28,000
• New cost = R95,000, useful life = 5 years, hence annual depreciation:

Annual depreciation = R95,000 / 5 = R19,000

Total depreciation = R19,000 + R28,000 = R36,124

To find the carrying value of the vehicle sold:

Carrying value = Original cost - Depreciation

• Original cost = R80,000
• Depreciation = R12,000 (1 method) or calculated directly = R68,000.

The carrying value of the vehicle sold is R68,000.

Fixed assets purchased can be calculated as follows:

Purchases = Ending fixed assets - Beginning fixed assets + Depreciation Using given values:

• Ending fixed assets = R7,988,000
• Beginning fixed assets = R6,600,000
• Depreciation = R298,000

So, Purchases = R7,988,000 - R6,600,000 + R298,000 = R1,160,624

Dividends paid can be calculated as follows:

Dividends paid = Total dividends - Undistributed profits Using:

• Dividends paid = R180,000 + R552,000 - R264,500 = R468,000

The decrease in loans is computed based on payments: Using values:

• Beginning liability = R456,000
• Payments during the year = R216,000 - R17,600.

So, Decrease = R456,000 - R240,000 = R240,000

To complete the NET CHANGE IN CASH AND CASH EQUIVALENTS, calculate:

Change = Closing balance - Opening balance

• Opening balance = R129,000 + R5,000 = R134,000
• Closing balance = R125,000 + R5,000 = R130,000

Thus, NET CHANGE = R130,000 - R134,000 = -R4,000

Mark-up % can be calculated using:

Mark-up % = (Sales - Cost) / Cost x 100%
Given values:

• Sales = R5,400,000
• Cost = R2,700,000

Thus, Mark-up % = ((R5,400,000 - R2,700,000) / R2,700,000) x 100% = 100%

The Acid-test ratio is calculated as:

Acid-test ratio = (Current assets - Stock) / Current liabilities Using given values:

• Current assets = R1,323,000 - R514,500
• Current liabilities = R735,000

Therefore, Acid-test ratio = (R808,500 / R735,000) = 1.1

NAV is calculated as:

NAV = Total equity / Number of shares Using given values:

• Total equity = R8,840,700
• Number of shares = 1,000,000

So, NAV = R8,840,700 / 1,000,000 = R768.68

ROSE can be computed as:

ROSE % = (Net income / Average shareholders' equity) x 100% Using:

• Net income = R690,000
• Average equity = (Opening + Closing equity) / 2

Substituting values gives a final ROSE calculation.