NSC Accounting Analysis and interpretation of Financial Statements: JANTJES LIMITED The information

JANTJES LIMITED The information relates to the financial year ended 28 February 2022 - NSC Accounting - Question 2 - 2022 - Paper 1

Question 2

JANTJES LIMITED The information relates to the financial year ended 28 February 2022. REQUIRED: 2.2.1 Refer to Information A. Calculate the missing figures indica... show full transcript

Worked Solution & Example Answer:JANTJES LIMITED The information relates to the financial year ended 28 February 2022 - NSC Accounting - Question 2 - 2022 - Paper 1

Step 1

Refer to Information A. Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note.

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Answer

To calculate the missing figures:

(i) Carrying value of vehicles on 1 March 2021:

The carrying value is determined by subtracting the total depreciation from the cost of the vehicles:

$ext{Carrying Value} = 2,350,000 - 840,000 = 1,510,000$
- (ii) Total depreciation on equipment:
The depreciation can be calculated using the formula for straight-line depreciation:

$ext{Total Depreciation} = ext{Old} + ext{(New Value} imes rac{10 ext{ ext{%}}}{100})$

Plugging values:

$= 28,000 - 1 + 27,999 = 36,124$
- (iii) Carrying value of the vehicle sold:
The carrying value involves calculating the depreciation:

$ext{Carrying Value} = 80,000 - 12,000 = 68,000$

Therefore, the calculated values are: Carrying Value = 1,510,000, Total Depreciation = 36,124, and Carrying Value of the vehicle sold = 68,000.

Step 2

Calculate the following amounts for the 2022 Cash Flow Statement: - Fixed assets purchased - Dividends paid - Decrease in loan

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Answer

Fixed assets purchased:

The amount can be calculated by adding the depreciation:

$7,988,000 - 600,000 - 298,000 - 36,124 = 1,160,624$
- Dividends paid:
Using the provided figures:

$180,000 + 552,000 - 264,500 = 468,000$
- Decrease in loan:
The calculation involves finding the difference:

$456,000 - 216,000 = 240,000$

Step 3

Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement.

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Answer

The NET CHANGE is calculated as:

$129,000 + 5,000 - 125,000 = 254,000$

Step 4

Calculate the following financial indicators on 28 February 2022: - % mark-up achieved - Acid-test ratio - Net asset value per share (NAV) - % return on average shareholders' equity (ROSEH)

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Answer

% mark-up achieved:

Calculated as:

$rac{5,400,000 - 2,700,000}{2,700,000} imes 100 = 75 ext{ ext{%}}$
Acid-test ratio:

$rac{(1,323,000 - 514,500)}{735,000} = 1.1$
Net asset value per share (NAV):

$rac{8,840,700}{100} = 768.8 ext{ cents}$
% return on average shareholders' equity (ROSEH):

$rac{(609,000 - 672,000)}{670,000} imes 100$

JANTJES LIMITED The information relates to the financial year ended 28 February 2022 - NSC Accounting - Question 2 - 2022 - Paper 1

Worked Solution & Example Answer:JANTJES LIMITED The information relates to the financial year ended 28 February 2022 - NSC Accounting - Question 2 - 2022 - Paper 1

Refer to Information A. Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note.

Calculate the following amounts for the 2022 Cash Flow Statement: - Fixed assets purchased - Dividends paid - Decrease in loan

Complete the NET CHANGE IN CASH AND CASH EQUIVALENTS section of the Cash Flow Statement.

Calculate the following financial indicators on 28 February 2022: - % mark-up achieved - Acid-test ratio - Net asset value per share (NAV) - % return on average shareholders' equity (ROSEH)

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