Home NSC English General Accounting Analysis and interpretation of Financial Statements Calculate the following financial indicators for the financial year ended 31 March 2021:
3.1.1 Debt-equity ratio
3.1.2 Net asset value per share
3.1.3 Dividend pay-out rate
3.1.4 Return on average shareholders' equity (ROSHE)
3.2 Complete the table in the ANSWER BOOK for the following items for the 2021 Cash Flow Statement
Calculate the following financial indicators for the financial year ended 31 March 2021:
3.1.1 Debt-equity ratio
3.1.2 Net asset value per share
3.1.3 Dividend pay-out rate
3.1.4 Return on average shareholders' equity (ROSHE)
3.2 Complete the table in the ANSWER BOOK for the following items for the 2021 Cash Flow Statement - English General - NSC Accounting - Question 3 - 2021 - Paper 1 Question 3
View full question Calculate the following financial indicators for the financial year ended 31 March 2021:
3.1.1 Debt-equity ratio
3.1.2 Net asset value per share
3.1.3 Dividend pay-... show full transcript
View marking scheme Worked Solution & Example Answer:Calculate the following financial indicators for the financial year ended 31 March 2021:
3.1.1 Debt-equity ratio
3.1.2 Net asset value per share
3.1.3 Dividend pay-out rate
3.1.4 Return on average shareholders' equity (ROSHE)
3.2 Complete the table in the ANSWER BOOK for the following items for the 2021 Cash Flow Statement - English General - NSC Accounting - Question 3 - 2021 - Paper 1
3.1.1 Debt-equity ratio Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
To calculate the debt-equity ratio, use the formula:
ext{Debt-Equity Ratio} = rac{ ext{Total Debt}}{ ext{Total Equity}} = rac{2,450,000}{10,387,600}
ightarrow 0.2 : 1
This indicates that for every 1 unit of equity, there are 0.2 units of debt.
3.1.2 Net asset value per share Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
To find the net asset value per share, the formula used is:
ext{Net Asset Value per Share} = rac{ ext{Total Assets} - ext{Total Liabilities}}{ ext{Number of Shares}} = rac{10,387,600}{800,000} * 100 = 1,298.5 ext{ cents}
This represents the value of each share based on the net assets of the company.
3.1.3 Dividend pay-out rate Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
The dividend pay-out rate can be calculated using the formula:
ext{Dividend Pay-out Rate} = rac{ ext{Dividends Paid}}{ ext{Net Income}} * 100 = rac{579,000}{2,870,000} * 100 = 22\\%
This shows that 22% of the earnings were paid out as dividends.
3.1.4 Return on average shareholders' equity (ROSHE) Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
ROSHE can be calculated using the following formula:
ext{ROSHE} = rac{ ext{Net Income}}{ ext{Average Shareholders' Equity}} * 100 = rac{2,870,000}{ rac{(10,387,600 + 6,910,000)}{2}} * 100
ightarrow 33.2\\%
This indicates the return generated on shareholders' equity.
3.2.1 Change in receivables Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Calculate the change in receivables as:
e x t C h a n g e i n R e c e i v a b l e s = 418 , 000 − 390 , 000 = 28 , 000 e x t ( O u t f l o w ) ext{Change in Receivables} = 418,000 - 390,000 = 28,000 ext{ (Outflow)} e x t C han g e in R ece i v ab l es = 418 , 000 − 390 , 000 = 28 , 000 e x t ( O u t f l o w ) This indicates an increase in receivables, which is an outflow.
3.2.2 Change in payables Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Calculate the change in payables as:
e x t C h a n g e i n P a y a b l e s = 520 , 000 − 359 , 000 = 176 , 000 e x t ( I n f l o w ) ext{Change in Payables} = 520,000 - 359,000 = 176,000 ext{ (Inflow)} e x t C han g e in P a y ab l es = 520 , 000 − 359 , 000 = 176 , 000 e x t ( I n f l o w ) This shows a reduction in payables which indicates an inflow.
3.3.1 Taxation paid Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
To calculate the taxation paid, use:
e x t T a x a t i o n P a i d = 1 , 085 , 000 − 124 , 000 − 354 , 000 = 607 , 000 ext{Taxation Paid} = 1,085,000 - 124,000 - 354,000 = 607,000 e x t T a x a t i o n P ai d = 1 , 085 , 000 − 124 , 000 − 354 , 000 = 607 , 000 This represents the total tax paid during the financial year.
3.3.2 Dividends paid Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
To find dividends paid, use the formula:
e x t D i v i d e n d s P a i d = 210 , 000 ∗ 0.45 = 579 , 000 ext{Dividends Paid} = 210,000 * 0.45 = 579,000 e x t D i v i d e n d s P ai d = 210 , 000 ∗ 0.45 = 579 , 000 This indicates the total dividends disbursed to shareholders.
3.3.3 Proceeds from sale of fixed assets Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Calculate proceeds from the sale of fixed assets as:
e x t P r o c e e d s f r o m S a l e o f F i x e d A s s e t s = 8 , 865 , 000 − 1 , 360 , 000 − 788 , 000 = 588 , 000 ext{Proceeds from Sale of Fixed Assets} = 8,865,000 - 1,360,000 - 788,000 = 588,000 e x t P rocee d s f ro m S a l eo f F i x e d A sse t s = 8 , 865 , 000 − 1 , 360 , 000 − 788 , 000 = 588 , 000 This shows the funds gained from selling fixed assets.
3.3.4 Funds used for the repurchase of shares Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Calculate the funds used for repurchasing shares:
e x t F u n d s f o r R e p u r c h a s e o f S h a r e s = 273 , 000 ext{Funds for Repurchase of Shares} = 273,000 e x t F u n d s f or R e p u rc ha seo f S ha res = 273 , 000 This reflects the cash used to buy back shares.
Join the NSC students using SimpleStudy...97% of StudentsReport Improved Results
98% of StudentsRecommend to friends
100,000+ Students Supported
1 Million+ Questions answered
© 2025 SimpleStudy. All rights reserved
