NSC Accounting Analysis and interpretation of Financial Statements: Choose a description in COLUMN B

Question

Choose a description in COLUMN B that matches the user of financial statements in COLUMN A. Write only the letters (A to D) next to the question numbers (5.1.1 to 5.1.4) in the ANSWER BOOK.

COLUMN A
5.1.1 Trade unions
5.1.2 SARS
5.1.3 Shareholders
5.1.4 Directors

COLUMN B
A want to be assured that their investment in the company is used wisely
B use the financial statements to make decisions to manage the company
C monitor whether their members are paid fairly
D need to be assured that income tax is levied on the net profit correctly

(4 x 1)

5.2 MALOTRA LTD
You are provided with information relating to Malotra Ltd for the financial year ended 28 February 2018. The company is registered with an authorised share capital of 1 200 000 ordinary shares.

REQUIRED:

5.2.1 Refer to Information A.
Calculate the missing amounts denoted by (a) to (d) on the Fixed Asset Note.

5.2.2 Calculate the net profit after income tax on 28 February 2018.

5.2.3 Calculate the following for the Cash Flow Statement:

- Dividends paid
- Funds used to repurchase shares
- Proceeds from shares issued

5.2.4 Complete the section for Cash and Cash Equivalents in the Cash Flow Statement.

5.2.5 Calculate the following financial indicators on 28 February 2018:

- Acid-test ratio
- Debt-equity ratio
- Return on average shareholders' equity.

Choose a description in COLUMN B that matches the user of financial statements in COLUMN A - NSC Accounting - Question 5 - 2018 - Paper 1

Worked Solution & Example Answer:Choose a description in COLUMN B that matches the user of financial statements in COLUMN A - NSC Accounting - Question 5 - 2018 - Paper 1

5.1.1 Trade unions

5.1.2 SARS

5.1.3 Shareholders

5.1.4 Directors

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