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

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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.... show full transcript

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

Step 1

5.1.1 Trade unions

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Answer

C

Step 2

5.1.2 SARS

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Answer

D

Step 3

5.1.3 Shareholders

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A

Step 4

5.1.4 Directors

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B

Step 5

5.2.1 Refer to Information A.

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To calculate the missing amounts on the Fixed Asset Note: (a) 6,192,350−4,256,350=R1,936,0006,192,350 - 4,256,350 = R 1,936,000 (b) 535,250+419,750=R955,000535,250 + 419,750 = R 955,000 (c) 1,415,000−955,000=R460,0001,415,000 - 955,000 = R 460,000 (d) 1,500,000−995,000=R98,0001,500,000 - 995,000 = R 98,000

Step 6

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

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The net profit after tax is calculated as: 286,000 imes rac{7}{30} = R 667,800

Step 7

5.2.3 Calculate the following for the Cash Flow Statement:

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  • Dividends paid: 176,000+332,000−132,000=R376,000176,000 + 332,000 - 132,000 = R 376,000
  • Funds used to repurchase shares: 120,000imes(7.40+0.60)=R960,000120,000 imes (7.40 + 0.60) = R 960,000
  • Proceeds from shares issued: 6,512,000−5,760,000=R1,640,0006,512,000 - 5,760,000 = R 1,640,000

Step 8

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

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The net change in cash and cash equivalents is 1,460,0001,460,000, with the opening balance and closing balance adjusted accordingly to show a closing cash position of 36,40036,400.

Step 9

5.2.5 Calculate the following financial indicators on 28 February 2018:

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  • Acid-test ratio: rac{1,136,700 - 471,100}{512,000} = 1.3 : 1
  • Debt-equity ratio: rac{667,800}{1,400,000} = 0.48
  • Return on average shareholders' equity: rac{667,800}{(648,300 + 586,600)} imes 100 = 10.5\%

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