USANDA LIMITED The financial year ended on 28 February 2021 - NSC Accounting - Question 2 - 2020 - Paper 1

To find the dividends paid:

1. Refer to the retained earnings or direct transactions for dividends from the financial statements.

2. Assume starting from profit available for dividends R247,500 and an existing balance of R340,000.

3. The calculation is:

   Retained earnings - Dividends = Total payout

   $247500 - 340000 = 742600$

4. Thus, the dividends paid is R742,500.

To outline cash effects for financing activities:

1. Documentation of proceeds from shares:

   Proceeds = 9,555,000 + R7.00 * 335,000 = 11,220,000

2. Adjust for any changes in loans:

   Change in loan = R2,080,000 - R270,000 - R420,000 = -150,000

3. Thus, cash effects for financing activities total R3,182,500.

To measure the net change:

1. Take opening cash balance: R154,700 - R90,000
2. The closing cash balance: R68,700.
3. Thus, net change in cash equals R56,000.

Calculate the percentage of operating profit on sales:

1. Operating profit is R2,262,100.

2. Sales are R18,700,000.

3. The formula is:

   % Operating Profit = (Operating Profit / Sales) * 100

   = (2262100 / 18700000) * 100 ≈ 12.12 ext{%}

4. Therefore, the % operating profit on sales is approximately 12.12%.

To find the acid-test ratio:

1. The current assets (excluding inventory) are R659,500 + R383,000.

2. The current liabilities are thus:

   Acid-test Ratio = (Current Assets / Current Liabilities) $= (659500 + 383000) / 611900 ext{approximately} 1.62$

To calculate ROSH:

1. Average shareholders' equity is assessed.

2. Calculation follows as:

   ROSH % = (Net Income / Average Shareholder's Equity) * 100

3. Thus:

   = (1243900 / 918400) * 100 ext{approximately} 13.38 ext{%}

The dividend payout rate can be figured out by:

1. Use the formula:

   $Dividend Payout Rate = (Dividends Paid / Net Income) * 100$

2. As per calculations include:

   = (835,000 / 1,243,900) * 100 ext{approximately} 67.67 ext{%}

3. The dividend payout rate is approximately 67.67%.