QUESTION 1: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (58 marks; 52 minutes) 1.1 MALIBU LIMITED The following information relates to Malibu Ltd their financial year. ended on 29 February 2024. REQUIRED: 1.1.1 Explain why depreciation and interest expense are added back to the net profit when preparing note 1 for the Cash Flow statement. (2) 1.1.2 Calculate the following figures for 2024 Cash Flow Statement: . Cash generated from operations (11) . Income tax paid (4) . Dividends paid (4) 1.1.3 Complete the Cash Flow Statement for the year ended 29 February 2024. (25) NOTE: Certain figures are provided in the ANSWER BOOK. 1.1.4 Calculate the following financial indicators for the year ended on 29 February 2024: . Net profit after tax on sales. . Debt equity ratio. . Return on average shareholders' equity (ROSHE). INFORMATION: A. Extract from the Income Statement for the year ended 29 February 2024: Sales 125 R 8 653 Depreciation Interest on loan Net profit before tax Income tax 2024 Grade 12 Project This study source was downloaded by 100000871406174 from CourseHero.com on 05-21-2024 09:40:50 GMT-05:00 https://www.coursehero.com/file/233174258/docx/ B. 3 Extract from the Balance Sheet on the last day of February 362 500 240 000 1 850 000 465 500 Question Paper 29 Feb. 2024 Tangible/Fixed assets R 4 787 500 28 Feb. 2023 R 4 325 000 Fixed deposit (15%) 60 000 80 000 Inventories 395 000 422 500 Trade and other receivables [see C (i) 147 500 155 000 below] Cash and cash equivalents 600 300 136 500 Shareholders' equity 4 042 500 2 875 500 Ordinary share capital Retained income Non-current liabilities. 3 150 000 892 500 Trade and other payables [see C(ii) below] 1 050 000 365 000 2 250 000 625 500 1 575 000 578 200 C. Notes to the Statement of Financial Position: (i) Trade and other receivables: Accrued income Net trade debtors Prepaid expenses SARS (Income tax) 29 Feb. 2024 28 Feb. 2023 R15 000 72 500 35 000 25 000 R19 000 120 000 16 000 0 (ii) Trade and other payables: 29 Feb. 2024 28 Feb. 2023 Trade creditors R40 000 R90 000 Accrued expenses 5 000 15 000 Income received in advance 10 000 35 000 Shareholders for dividends 310 000 420 000 SARS: Income tax 0 18 200 D. Fixed Assets: (4) ཙཀླི (3) (5) Fixed assets were sold at book value at the end of the financial year, R12 500. New property was bought during the year. E. Dividends and shares: Interim dividends were paid during the year. Total dividends for the year ended 29 February 2024 amounted to R675 000. Shares were not repurchased during the year. 2024 Grade 12 Project This study source was downloaded by 100000871406174 from CourseHero.com on 05-21-2024 09:40:50 GMT-05:00 https://www.coursehero.com/file/233174258/docx/ Question Paper 58

QUESTION 1: CASH FLOW STATEMENT AND FINANCIAL INDICATORS (58 marks; 52 minutes) 1.1 MALIBU LIMITED The following information relates to Malibu Ltd their financial year. ended on 29 February 2024. REQUIRED: 1.1.1 Explain why depreciation and interest expense are added back to the net profit when preparing note 1 for the Cash Flow statement. (2) 1.1.2 Calculate the following figures for 2024 Cash Flow Statement: . Cash generated from operations (11) . Income tax paid (4) . Dividends paid (4) 1.1.3 Complete the Cash Flow Statement for the year ended 29 February 2024. (25) NOTE: Certain figures are provided in the ANSWER BOOK. 1.1.4 Calculate the following financial indicators for the year ended on 29 February 2024: . Net profit after tax on sales. . Debt equity ratio. . Return on average shareholders' equity (ROSHE). INFORMATION: A. Extract from the Income Statement for the year ended 29 February 2024: Sales 125 R 8 653 Depreciation Interest on loan Net profit before tax Income tax 2024 Grade 12 Project This study source was downloaded by 100000871406174 from CourseHero.com on 05-21-2024 09:40:50 GMT-05:00 https://www.coursehero.com/file/233174258/docx/ B. 3 Extract from the Balance Sheet on the last day of February 362 500 240 000 1 850 000 465 500 Question Paper 29 Feb. 2024 Tangible/Fixed assets R 4 787 500 28 Feb. 2023 R 4 325 000 Fixed deposit (15%) 60 000 80 000 Inventories 395 000 422 500 Trade and other receivables [see C (i) 147 500 155 000 below] Cash and cash equivalents 600 300 136 500 Shareholders' equity 4 042 500 2 875 500 Ordinary share capital Retained income Non-current liabilities. 3 150 000 892 500 Trade and other payables [see C(ii) below] 1 050 000 365 000 2 250 000 625 500 1 575 000 578 200 C. Notes to the Statement of Financial Position: (i) Trade and other receivables: Accrued income Net trade debtors Prepaid expenses SARS (Income tax) 29 Feb. 2024 28 Feb. 2023 R15 000 72 500 35 000 25 000 R19 000 120 000 16 000 0 (ii) Trade and other payables: 29 Feb. 2024 28 Feb. 2023 Trade creditors R40 000 R90 000 Accrued expenses 5 000 15 000 Income received in advance 10 000 35 000 Shareholders for dividends 310 000 420 000 SARS: Income tax 0 18 200 D. Fixed Assets: (4) ཙཀླི (3) (5) Fixed assets were sold at book value at the end of the financial year, R12 500. New property was bought during the year. E. Dividends and shares: Interim dividends were paid during the year. Total dividends for the year ended 29 February 2024 amounted to R675 000. Shares were not repurchased during the year. 2024 Grade 12 Project This study source was downloaded by 100000871406174 from CourseHero.com on 05-21-2024 09:40:50 GMT-05:00 https://www.coursehero.com/file/233174258/docx/ Question Paper 58

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 80BPSB: Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial...

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