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 (ROSH) Complete the table in the ANSWER BOOK for the following items for the 2021 Cash Flow Statement - NSC Accounting - Question 3 - 2021 - Paper 1

The Net asset value per share can be calculated using:

$$ext{Net asset value per share} = \frac{ ext{Total Equity}}{ ext{Number of Shares}}$$

Given:

• Total Equity = 10,387,600
• Number of Shares = 800,000

Therefore:

$$ext{Net asset value per share} = \frac{10,387,600}{800,000} = 1,298.95 ext{ cents}$$

To find the Dividend pay-out rate, the formula is:

ext{Dividend pay-out rate} = \frac{ ext{Dividends Paid}}{ ext{Earnings}} imes 100 ext{%}

Given:

• Dividends Paid = 350,000
• Earnings = 1,600,000

Calculating:

ext{Dividend pay-out rate} = \frac{350,000}{1,600,000} \times 100 \approx 21.88\text{%} \approx 22\text{%}

The formula for ROSH is:

ext{ROSH} = \frac{ ext{Net Income}}{ ext{Average Shareholders' Equity}} \times 100 ext{%}

Given:

• Net Income = 2,870,000
• Average Shareholders' Equity = rac{(10,387,600 + 6,910,000)}{2}

Calculating Average Shareholders' Equity:

$$ext{Average Shareholders' Equity} = \frac{17,297,600}{2} = 8,648,800$$

Now substituting in ROSH formula:

ext{ROSH} = \frac{2,870,000}{8,648,800} \times 100 \approx 33.2\text{%}

To calculate the Change in receivables:

• Opening Receivables = 418,000
• Closing Receivables = 390,000

Change in receivables = 390,000 - 418,000 = -28,000

This indicates an outflow.

For Change in payables:

• Opening Payables = 520,000
• Closing Payables = 359,000

Change in payables = 359,000 - 520,000 = -161,000

This indicates an inflow.

To find Taxation paid:

• Total tax payable = 1,085,000
• Tax provision = 124,000
• Tax payments = 354,000

Taxation paid = 1,085,000 - 124,000 - 354,000 = 607,000.

Dividends paid can be calculated as:

• Total dividends = 210,000
• Out of total = 100% (or 1)
• Therefore, Dividends paid = 210,000 - (84,000) = 126,000.

Final amount: 579,000.

To calculate Proceeds from the sale of fixed assets:

• Sale value = 8,865,000
• Less loss on sale = 1,360,000
• Therefore, Proceeds = 8,878,000.

Funds used for repurchase of shares is straightforward:

• Repurchase amount = 273,000 and equity = 20,000 at R13.65.

Therefore, funds used = 273,000.