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2.1 Choose the correct word(s) from those given in brackets - NSC Accounting - Question 2 - 2024 - Paper 1
Question 2
2.1 Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question numbers (2.1.1 to 2.1.3) in the ANSWER BOOK. 2.1.1 The curr... show full transcript
Worked Solution & Example Answer:2.1 Choose the correct word(s) from those given in brackets - NSC Accounting - Question 2 - 2024 - Paper 1
Step 1
Prepare the Retained Income Note for the financial year ended 29 February 2024.
Answer
The Retained Income Note for Jingle Ltd for the year ended 29 February 2024 is as follows:
Retained Income Note
- Balance at the beginning of the year: R2,819,000
- Net profit after tax: R4,550,000
- Dividends:
- Total dividends (R5,746,000)
- Interim dividend (R3,408,000)
- Final dividend: Declared on 29 February 2024.
Balance at the end of the year: R1,512,000.
Step 2
Refer to the partially completed Cash Flow Statement provided. Calculate and/or provide the figures denoted by (i) to (v).
Answer
The Cash Flow Statement for the year ended 29 February 2024 should include the following calculations:
- (i) Interest paid: R966,000
- (ii) Dividends paid: R5,728,000
- (iii) Proceeds of shares issued: R4,300,000
- (iv) Share repurchased: R474,000
- (v) Cash & cash equivalents at the end of the year: -R3,219,000
These figures reflect the cash activities of the company for the specified period.
Step 3
Calculate the following financial indicators for the financial year ended 29 February 2024: - Acid-test ratio
Answer
The Acid-test ratio can be calculated using the formula:
ext{Acid-test ratio} = rac{ ext{Current Assets} - ext{Inventory}}{ ext{Current Liabilities}}
With the figures calculated, we find:
rac{(9,623,000 - 1,000,000)}{5,433,000} = 0.3
Step 4
Calculate the following financial indicators for the financial year ended 29 February 2024: - Interim dividend per share (in cents)
Answer
The interim dividend per share is calculated as follows:
ext{Interim Dividend per Share} = rac{ ext{Total Interim Dividends}}{ ext{Number of Shares}}
Here, this translates to:
rac{3,408,000}{1,420,000} = 240 ext{ cents}
Step 5
Calculate the following financial indicators for the financial year ended 29 February 2024: - % return on average shareholders' equity (ROSHE)
Answer
The % return on average shareholders' equity can be calculated using the formula:
ext{ROSHE} = rac{ ext{Net Profit after Tax}}{ ext{Average Shareholder's Equity}} imes 100
The computation yields:
rac{4,550,000}{27,248,000} imes 100 = 16.9 ext{%}