JINGLE LTD The information relates to the financial year ended 29 February 2024 - NSC Accounting - Question 2 - 2024 - Paper 1

The cash flow statement outlines the various cash effects of operating, investing, and financing activities for the company. The calculated values include: (i) Cash generated from operations: R232,000 (ii) Interest paid: R966,000 (iii) Dividends paid: R5,728,000 (iv) Cash & cash equivalents on 1 March 2023: R1,030,000 (v) Cash & cash equivalents on 29 February 2024: R(3,219,000)

This data is derived from the operations and includes calculations from various components of the statement.

The Acid-test ratio is calculated as:

$\text{Acid-test ratio} = \frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}}$

Here, if we set the relevant current assets and liabilities:

• Current Assets: R9,623,000
• Current Liabilities: R5,433,000

Then, $\text{Acid-test ratio} = \frac{(9,623,000 - 1,000,000)}{5,433,000} = 0.3$

Thus, the acid-test ratio is 0.3:1.

The interim dividend per share can be calculated using:

$\text{Interim dividend per share} = \frac{\text{Total Interim Dividend}}{\text{Number of Shares}}$

Given:

• Total Interim Dividend: R3,408,000
• Number of shares: R1,420,000

Then, $\text{Interim dividend per share} = \frac{3,408,000}{1,420,000} \approx 240 \text{ cents}$

The Return on Average Shareholders' Equity (ROSHE) is calculated as:

$\text{ROSHE} = \frac{\text{Net Profit After Tax}}{\text{Average Shareholders' Equity}} imes 100$

Using:

• Net Profit After Tax: R4,550,000
• Average Shareholders' Equity = \frac{(2,819,000 + 5,729,000)}{2} = R5,274,000

Then, $\text{ROSHE} = \frac{4,550,000}{5,274,000} \times 100 \approx 16.9\%$