5.1 Three financial statements are provided as options in which each of the following items would appear - NSC Accounting - Question 5 - 2019 - Paper 1
Question 5
5.1 Three financial statements are provided as options in which each of the following items would appear. Choose the financial statement and write only the letter (A... show full transcript
Worked Solution & Example Answer:5.1 Three financial statements are provided as options in which each of the following items would appear - NSC Accounting - Question 5 - 2019 - Paper 1
Step 1
5.1.1 Profit on sale of a fixed asset
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Answer
This item is reported in the C Cash Flow Statement as it reflects the cash inflows from investing activities.
Step 2
5.1.2 Amount due to shareholders for final dividends payable
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Answer
This item is recorded in the A Statement of Financial Position (Balance Sheet) as a current liability.
Step 3
5.1.3 Total amount spent on the repurchase of shares
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Answer
This amount is found in the C Cash Flow Statement as it relates to financing activities.
Step 4
5.1.4 Total income tax amount for the current financial year
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Answer
This amount is also reflected in the C Cash Flow Statement as it pertains to operating activities.
Step 5
5.2.1 Calculate the following figures for the 2019 Cash Flow Statement:
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Income tax paid: This figure can be determined from the income statement or notes to the financial statements.
Dividends paid: This is calculated based on the dividends declared and may include any amounts carried over from previous periods.
Proceeds of shares issued: This amount reflects cash inflows from issuing new shares, which can be found in the financing section of the Cash Flow Statement.
Fixed assets purchased: This amount reflects cash outflows in the investing section for the purchase of new property, plant, and equipment.
Step 6
5.2.2 Calculate financial indicators for the year ended 28 February 2019:
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Answer
% Operating profit on sales: This is calculated as (Operating Profit / Sales) * 100, which reflects operating efficiency.
Net asset value per share: This is calculated by dividing total shareholders' equity by the number of shares outstanding.
Debt-equity ratio: This ratio is calculated by dividing total liabilities by total shareholders' equity, indicating financial leverage.
