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

To find the dividends paid, we use the formula:

$ext{Dividends Paid} = ext{Retained Earnings at End} - ext{Retained Earnings at Beginning}$

Substituting the values:

$ext{Dividends Paid} = 742,500$

The cash effects for financing activities include proceeds from shares and changes in loans. The formula is:

1. Proceeds from shares: $335,000 + 2,345,000 - 11,220,000 = 680,000$
2. Change in loan: $2,080,000 - 270,000 - 420,000 = -150,000$

Overall:

$ext{Total Cash Effects} = 680,000 - 150,000 = R530,000$

To determine the net change in cash and cash equivalents, we compute the following:

$ext{Net Change} = ext{Cash (opening balance)} - ext{Cash (closing balance)}$

Using the respective values, we find:

$ext{Net Change} = 154,700 - 90,000 = R64,700$

The percentage of operating profit on sales is calculated using:

ext{Operating Profit %} = rac{ ext{Operating Profit}}{ ext{Sales}} imes 100

Using the values:

ext{Operating Profit %} = rac{2,262,100}{17,800,000} imes 100 = 12.72\%

The acid-test ratio is calculated as follows:

ext{Acid-test Ratio} = rac{ ext{Current Assets} - ext{Inventory}}{ ext{Current Liabilities}}

Using the given values:

ext{Acid-test Ratio} = rac{(659,500 - 270,500)}{383,000} = 0.61

The ROSHE can be determined using:

ext{ROSHE} = rac{ ext{Net Income}}{ ext{Average Shareholders' Equity}} imes 100

Substituting the values gives:

ext{ROSHE} = rac{1,243,900}{(1,911,400)} imes 100 = 65.12\%

The dividend payout rate is calculated as:

ext{Dividend Payout Rate} = rac{ ext{Dividends Paid}}{ ext{Earnings}} imes 100

Using the values:

ext{Dividend Payout Rate} = rac{0.50 ext{(per share)} imes 30}{R3.00} imes 100 = 67.6\%