QUESTION 3: INTERPRETATION OF FINANCIAL INFORMATION (36 marks; 22 minutes) 3.1 CONCEPTS     REQUIRED:     Concepts relating to companies are given in COLUMN A and descriptions in COLUMN B. Choose a description from COLUMN B that matches a concept in COLUMN A. Write only the letter (A–D) next to the question number (3.1.1 – 3.1.4) in the ANSWER BOOK.           COLUMN A (CONCEPT) COLUMN B (EXPLANATION) 3.1.1   Liquidity A. Indicates the benefit that the owners receive from their investment in the business. 3.1.2   Solvency B. Indicates whether the business can pay off immediate debts.   3.1.3   Gearing C. Indicates the extent to which a business is financed by borrowed capital. 3.1.4   Return on equity D. Indicates whether the business will be able to pay off all its debts. (4)       3.2 MALINDE LTD     The information presented relates to the financial year ended 30 April 2020.     REQUIRED:     3.2.1 Comment on the overall liquidity position of the company. Quote THREE relevant financial indicators (with figures). (12)   3.2.2 The directors decided to change the dividend pay-out policy in 2020.       ·       Provide calculations that indicate the policy change.     ·       Explain the effect of this change of policy on the company. State TWO points. (8)   3.2.3 One of the directors feels that the company should pay back the loan as soon as possible. What are your views about this? Quote and explain TWO relevant financial indicators with figures. (6)   3.2.4 Explain why the shareholders are satisfied with the market price of the shares on the JSE. Quote figures/financial indicators. (6)

VRAAG 2: KONTANTVLOEISTAAT, NOTAS TOT FINANSIËLE STATE EN VERHOUDINGS (43 punte; 26 minute) Jy word voorsien van inligting rakende Blusser Beperk vir die jaar geëindig 30 Junie 2020. Blusser Beperk is ‘n publieke maatskappy wat op die JSE genoteer is.   GEVRA:   2.1 Voltooi die nota vir Gewone aandelekapitaal tot die Balansstaat op 30 Junie 2020. (5) 2.2 Bereken die ontbrekende bedrae aangedui deur (a) tot (g) in die Kontantvloeistaat. LET WEL: Dui die korrekte vloei van kontant in die finale antwoord aan. (18) 2.3 Die Kontantvloeistaat beklemtoon sekere belangrike besluite wat deur die direkteure in die afgelope jaar geneem is. Verduidelik TWEE van dié belangrike besluite. Haal  bedrae aan om jou antwoord te ondersteun. (6) 2.4 Op die AJV kondig die direkteure aan dat die maatskappy: Alle werknemers met betrekking tot morele en etiese gedrag sal oplei. Fondse vir die skoonmaak van die omgewing sal skenk. Verduidelik waarom dit nodig is ten spyte daarvan dat dit die maatskappy elke jaar baie geld sal kos. Noem DRIE punte. (6) 2.5 Bereken die volgende finansiële aanwysers op 30 Junie 2020:     ·       Vuurproefverhouding (5)   ·       Netto batewaarde per aandeel (3)

VRAAG 1: FINANSIËLE STATE EN NOTAS TOT FINANSIëLE STATE (59 punte; 34 minute) Jy word van inligting voorsien vir Daddabuy Beperk vir die finansiële jaar geëindig op 28 Februarie 2021.   GEVRA:   1.1 Voltooi die Inkomstestaat vir die jaar geëindig 28 Februarie 2021. (47) 1.2 Voltooi die Nota vir Behoue-inkomste. (12) INLIGTING:   UITTREKSEL UIT DIE VOOR-AANSUIWERINGSPROEFBALANS OP 28 FEBRUARIE 2021   Balansstaatrekeninge-afdeling Debiet Krediet Gewone aandelekapitaal   7 200 000 Behoue inkomste (1 Maart 2020)   455 600 Lening: Bulls Bank   ? Handelsvoorraad 1 905 000   Krediteurekontrole   974 600 SAID (Inkomstebelasting) 523 600   Voorsiening vir oninbare skulde   42 800 Vaste deposito: Monkey Bank (7%) 600 000   Nominale rekeninge-afdeling     Verkope   ? Koste van verkope 14 800 000   Huurinkomste   252 000 Rente op vaste deposito   21 000 Direkteursfooie 1 525 000   Salarisse en lone 865 350   Oninbare skulde 22 500   Ouditeursfooie 160 000   Advertensies 555 000   Verbruiksgoedere 72 600   Waardevermindering ?   Waardevermindering Toerusting 29 800   Waardevermindering Voertuie ?   Diverse uitgawes 647 051   Gewone aandele dividende 480 000  

QUESTION 7:  BUDGETING (43 marks; 26 minutes) 7.1 Indicate whether the following statements are True or False. Write only “True” or “False” next to the numbers (7.1.1 – 7.1.3) in the ANSWER BOOK.     7.1.1 A Cash Budget is prepared to show the actual receipts and payments for a specific period.     7.1.2 A Projected Income Statement would reflect the expected profit or loss for the budget period.     7.1.3 Only nominal accounts are recorded in a Cash Budget. (3)         7.2 BALULE LTD     The information relates to Balule Ltd for the 12-month budget period ended 31 May 2021.     REQUIRED:     7.2.1 Complete the Debtors Collection Schedule. (7)   7.2.2 Calculate the amounts denoted by (i) to (vi) on the extract of the Cash Budget provided.  (21)   7.2.3 Refer to Information J: ·       Calculate the percentage increase in the manager’s salary. ·       Comment on whether the salary and wage decision were justified. Quote figures. ·       Provide TWO possible consequences of this decision. (4)   (4) (4)   INFORMATION:     A. The business sells kitchen appliances at a profit mark-up of 80% on cost. Stock is replaced in the month of sale. A base stock is maintained.      B. Actual and budgeted figures for 2021:     MARCH APRIL MAY Sales 255 000 261 000 229 900 Purchases 130 000 ? 120 500     C. 70% of total sales are on credit. Debtors pay as follows:       ·       60% in the month following the sales month.       ·       35% in the second month following the month of sales.       ·       5% is written off.     D. All goods are purchased on credit. Creditors are paid after 30 days subject to a 5% discount.      

VRAAG 4: DEBITEUREVERSOENING, OUDERDOMSANALISE EN BTW (43 punte; 26 minute) 4.1 Kies die regte antwoord uit die gegewe woorde tussen hakies. Skryf slegs die antwoord neer langs elke nommer (4.1.1 – 4.1.3) in die ANTWOORDBOEK.     4.1.1 ‘n (Debiet/krediet) saldo op die bankrekening dui op ‘n positiewe saldo.     4.1.2 ‘n (Debietnota/kredietnota) is die brondokument vir goedere teruggestuur na ‘n krediteur.     4.1.3 ‘n (Kontant korting/korting toegestaan) word aangebied as rekeninge binne ‘n sekere tyd betaal word. (3) 4.2 DEBITEUREVERSOENING EN OUDERDOMSONTLEDING     Stonehaven Handelaars, wat besit word deur Manie McDonaldo, verkoop produkte kontant sowel as op krediet. Hul krediettermyn is 30 dae, maar hulle begroot dat 80% van hul klante sal voldoen aan die kredietterme.     GEVRA:     4.2.1 Verduidelik kortliks waarom die saldo van die debiteurekontrole-rekening ooreen behoort te stem met die totaal op die debiteurelys. (4)   4.2.2 Bereken die korrekte eindsaldo van die debiteurekontrolerekening op 30 Junie 2020. (6)   4.2.3 Stel die korrekte debiteurelys van Stonehaven Handelaars op 30 Junie 2020 op.  Toon alle berekenings. (14)   4.2.4 Bestudeer inligting A en C hier onder en beantwoord onderstaande vrae:       ·   Stonehaven Handelaars het nie behoorlike beheer oor hul debiteure nie.  Haal 2 bedrae aan om die stelling te bewys en te motiveer. (4)     ·     Noem TWEE maatreëls wat Stonehaven Handelaars kan instel om hul debiteure aan te moedig om hul rekeninge volgens die krediet-terme te betaal. (4)     INLIGTING:     A. Debiteure-ouderdomsontleding skedule vir Junie 2020:     TOTAAL HUIDIG 30 DAE 60 DAE 90 DAE R177 100 R33 700 R26 300 R72 600 R44 500  

C. CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2020     CASH FLOW FROM OPERATING ACTIVITIES   Cash generated from operations   Interest paid (86 000) Dividends paid (496 000) Income tax paid (a)     CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets (2 285 000) Proceeds from sale of fixed assets 650 000 Proceeds from financial assets matured 550 000     CASH FLOW FROM FINANCING ACTIVITIES   Repurchase of shares (b) Proceeds with issue of shares (c) Change in loan (d)     Net change in cash and cash equivalents (e) Cash and cash equivalents beginning of year (f) Cash and cash equivalents at the end of year (g)         D. Shareholding for the 2020 financial year     ·       Authorised share capital: 700 000 ordinary shares     ·       On 1 July 2019 there were 500 000 shares in issue.     ·       On 1 January 2020 all the unissued shares were issued at R12,50 each.     ·       On 31 May 2020, 30 000 shares were repurchased at R1,50 more than the average price per share.   [43]

INFORMATION:   A. EXTRACT FROM INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2020     Interest expense 86 000     Income tax 350 000     Net profit after tax 960 000  

  INLIGTING:     Die volgende finansiële aanwysers is op 30 April 2020 bereken:       2020 2019 Bedryfskapitaalverhouding 2,5 : 1 2,1 : 1 Vuurproefverhouding 1,3 : 1 1,4 : 1 Debiteure-invorderingstydperk 27 dae 35 dae Krediteure-betalingstydperk 44 dae 57 dae Skuld-ekwiteit-verhouding 0,3 : 1 0,5 : 1 Opbrengs op kapitaal aangewend 12% 14% Opbrengs op aandeelhouersbelang 13,5% 14,5% Verdienste per aandeel 200 sent 160 sent Dividende per aandeel 180 sent 40 sent Netto batewaarde per aandeel 770 sent 760 sent Markprys per aandeel (JSE) 960 sent 800 sent Terugkoopprys per aandeel 800 sent 0 sent Rentekoers van lening 14% 13%         [36]

B. UITTREKSEL UIT DIE BALANSSTAAT SOOS OP 30 JUNIE 2020     2020 2019   BATES       Niebedryfsbates 4 538 400 3 370 000    Vaste bates 5 338 400 3 750 000    Finansiële bates 200 000 750 000   Bedryfsbates 1 760 000      Voorrade 440 000      Handels- en ander ontvangbares        SAID (Inkomstebelasting) 36 000 0    Kontant en kontantekwivalente 125 000 30 000   TOTALE BATES    

QUESTION 7:  BUDGETING (43 marks; 26 minutes) 7.1 Indicate whether the following statements are True or False. Write only “True” or “False” next to the numbers (7.1.1 – 7.1.3) in the ANSWER BOOK.     7.1.1 A Cash Budget is prepared to show the actual receipts and payments for a specific period.     7.1.2 A Projected Income Statement would reflect the expected profit or loss for the budget period.     7.1.3 Only nominal accounts are recorded in a Cash Budget. (3)         7.2 BALULE LTD     The information relates to Balule Ltd for the 12-month budget period ended 31 May 2021.     REQUIRED:     7.2.1 Complete the Debtors Collection Schedule. (7)   7.2.2 Calculate the amounts denoted by (i) to (vi) on the extract of the Cash Budget provided.  (21)   7.2.3 Refer to Information J: ·       Calculate the percentage increase in the manager’s salary. ·       Comment on whether the salary and wage decision were justified. Quote figures. ·       Provide TWO possible consequences of this decision. (4)   (4) (4)   INFORMATION:     A. The business sells kitchen appliances at a profit mark-up of 80% on cost. Stock is replaced in the month of sale. A base stock is maintained.      B. Actual and budgeted figures for 2021:     MARCH APRIL MAY Sales 255 000 261 000 229 900 Purchases 130 000 ? 120 500     C. 70% of total sales are on credit. Debtors pay as follows:       ·       60% in the month following the sales month.       ·       35% in the second month following the month of sales.       ·       5% is written off.     D. All goods are purchased on credit. Creditors are paid after 30 days subject to a 5% discount.