5.1 Three financial statements are provided as options in which each of the following items would appear - NSC Accounting - Question 5 - 2019 - Paper 1

This amount would be recorded in A Statement of Financial Position (Balance Sheet) since it represents a liability that the company owes to its shareholders.

The total amount spent on the repurchase of shares would also be found in the C Cash Flow Statement, as it reflects cash outflows related to financing activities.

The total income tax amount for the current financial year would be included in the C Cash Flow Statement, indicating cash outflows due to tax payments.

To calculate the figures for the 2019 Cash Flow Statement:

• Income tax paid: This is obtained from the financial statements and represents the cash paid during the financial year. Use the applicable tax rate on the taxable profits.
• Dividends paid: This figure should be indicated in the cash flow statement under financing activities, reflecting the total cash outflow for dividends declared and paid.
• Proceeds of shares issued: This amount reflects cash inflows from issuing new shares and is recorded under financing activities of the cash flow statement.
• Fixed assets purchased: This should be presented as a cash outflow under investing activities in the cash flow statement.

To calculate financial indicators for the year ended 28 February 2019:

• % Operating profit on sales: This is calculated by the formula: $ext{Operating Profit} / ext{Sales} imes 100$
• Net asset value per share: This can be computed as: $ext{Total Assets} - ext{Total Liabilities} / ext{Number of Shares}$
• Debt-equity ratio: This is calculated as: $ext{Total Debt} / ext{Total Equity}$