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

A Statement of Financial Position (Balance Sheet) The amount due to shareholders for final dividends is reflected in the Statement of Financial Position as a liability.

C Cash Flow Statement The total amount spent on the repurchase of shares is recorded in the Cash Flow Statement under financing activities.

C Cash Flow Statement The total income tax amount for the current financial year is shown in the Cash Flow Statement as part of cash flows from operating activities.

To calculate the required figures, use the financial data available for SUNSET LTD for the financial year ending 28 February 2019:

1. Income tax paid: Obtain this figure from the tax expense on the income statement or the notes accompanying the financial statements.

2. Dividends paid: Access this figure from the Statement of Changes in Equity or directly from the Cash Flow Statement.

3. Proceeds of shares issued: Identify this figure from the financing section of the Cash Flow Statement or related disclosures.

4. Fixed assets purchased: This is found in the investing section of the Cash Flow Statement, reflecting cash outflows.

1. % operating profit on sales:

   Formula:

   \text{% Operating Profit} = \left( \frac{\text{Operating Profit}}{\text{Sales}} \right) \times 100

2. Net asset value per share:

   Formula:

   $\text{Net Asset Value per Share} = \frac{\text{Total Assets - Total Liabilities}}{\text{Number of Shares}}$

3. Debt-equity ratio:

   Formula:

   $\text{Debt-Equity Ratio} = \frac{\text{Total Liabilities}}{\text{Total Equity}}$