How often Financial statements and analysis is asked

Where it was asked

• Oct/Nov 201319 marks
• May/Jun 201219 marks
• May/Jun 201118 marks

The questions

1. Oct/Nov 2013, Q3.13.5 marks

   Vukani Traders supplied its abridged financial statements for the year ended 31 January 2012. The abridged statement of profit or loss and other comprehensive income reflects: revenue of R819 000; cost of sales of R264 075 (made up of opening inventory on 01/02/2011 of R169 575, plus purchases, all on credit, of R336 000, giving R505 575, less closing inventory on 31/01/2012 of R241 500); gross profit of R554 925; other income of R9 450, giving R564 375; distribution, administrative and other expenses of R358 575; profit for the year of R205 800; no other comprehensive income; and total comprehensive income for the year of R205 800. The abridged statement of financial position as at 31 January 2012 shows: non-current assets (property, plant and equipment) of R735 000; current assets totalling R543 900 (inventories R241 500, trade and other receivables R206 850, cash and cash equivalents R95 550); total assets of R1 278 900; equity (capital) of R605 325; total liabilities of R673 575, comprising non-current liabilities (long-term borrowings) of R409 500 and current liabilities (trade and other payables) of R264 075; and total equity and liabilities of R1 278 900. Using the financial statements of Vukani Traders for the year ended 31 January 2012, calculate the inventory turnover rate, showing the formula and all calculations, and round your answer off to 2 decimal places where applicable.

2. Oct/Nov 2013, Q3.23 marks

   Vukani Traders supplied its abridged financial statements for the year ended 31 January 2012. The abridged statement of profit or loss and other comprehensive income reflects: revenue of R819 000; cost of sales of R264 075 (made up of opening inventory on 01/02/2011 of R169 575, plus purchases, all on credit, of R336 000, giving R505 575, less closing inventory on 31/01/2012 of R241 500); gross profit of R554 925; other income of R9 450, giving R564 375; distribution, administrative and other expenses of R358 575; profit for the year of R205 800; no other comprehensive income; and total comprehensive income for the year of R205 800. The abridged statement of financial position as at 31 January 2012 shows: non-current assets (property, plant and equipment) of R735 000; current assets totalling R543 900 (inventories R241 500, trade and other receivables R206 850, cash and cash equivalents R95 550); total assets of R1 278 900; equity (capital) of R605 325; total liabilities of R673 575, comprising non-current liabilities (long-term borrowings) of R409 500 and current liabilities (trade and other payables) of R264 075; and total equity and liabilities of R1 278 900. Using the financial statements of Vukani Traders for the year ended 31 January 2012, calculate the return on assets, showing the formula and all calculations, and round your answer off to 2 decimal places where applicable.

3. Oct/Nov 2013, Q3.33 marks

   Vukani Traders supplied its abridged financial statements for the year ended 31 January 2012. The abridged statement of profit or loss and other comprehensive income reflects: revenue of R819 000; cost of sales of R264 075 (made up of opening inventory on 01/02/2011 of R169 575, plus purchases, all on credit, of R336 000, giving R505 575, less closing inventory on 31/01/2012 of R241 500); gross profit of R554 925; other income of R9 450, giving R564 375; distribution, administrative and other expenses of R358 575; profit for the year of R205 800; no other comprehensive income; and total comprehensive income for the year of R205 800. The abridged statement of financial position as at 31 January 2012 shows: non-current assets (property, plant and equipment) of R735 000; current assets totalling R543 900 (inventories R241 500, trade and other receivables R206 850, cash and cash equivalents R95 550); total assets of R1 278 900; equity (capital) of R605 325; total liabilities of R673 575, comprising non-current liabilities (long-term borrowings) of R409 500 and current liabilities (trade and other payables) of R264 075; and total equity and liabilities of R1 278 900. Using the financial statements of Vukani Traders for the year ended 31 January 2012, calculate the trade payables settlement period, assuming that all purchases were made on credit, showing the formula and all calculations, and round your answer off to 2 decimal places where applicable.

4. Oct/Nov 2013, Q3.42.5 marks

   Vukani Traders supplied its abridged financial statements for the year ended 31 January 2012. The abridged statement of profit or loss and other comprehensive income reflects: revenue of R819 000; cost of sales of R264 075 (made up of opening inventory on 01/02/2011 of R169 575, plus purchases, all on credit, of R336 000, giving R505 575, less closing inventory on 31/01/2012 of R241 500); gross profit of R554 925; other income of R9 450, giving R564 375; distribution, administrative and other expenses of R358 575; profit for the year of R205 800; no other comprehensive income; and total comprehensive income for the year of R205 800. The abridged statement of financial position as at 31 January 2012 shows: non-current assets (property, plant and equipment) of R735 000; current assets totalling R543 900 (inventories R241 500, trade and other receivables R206 850, cash and cash equivalents R95 550); total assets of R1 278 900; equity (capital) of R605 325; total liabilities of R673 575, comprising non-current liabilities (long-term borrowings) of R409 500 and current liabilities (trade and other payables) of R264 075; and total equity and liabilities of R1 278 900. Using the financial statements of Vukani Traders for the year ended 31 January 2012, calculate the solvency ratio, showing the formula and all calculations, and round your answer off to 2 decimal places where applicable.

5. Oct/Nov 2013, Q3.53 marks

   Vukani Traders supplied its abridged financial statements for the year ended 31 January 2012. The abridged statement of profit or loss and other comprehensive income reflects: revenue of R819 000; cost of sales of R264 075 (made up of opening inventory on 01/02/2011 of R169 575, plus purchases, all on credit, of R336 000, giving R505 575, less closing inventory on 31/01/2012 of R241 500); gross profit of R554 925; other income of R9 450, giving R564 375; distribution, administrative and other expenses of R358 575; profit for the year of R205 800; no other comprehensive income; and total comprehensive income for the year of R205 800. The abridged statement of financial position as at 31 January 2012 shows: non-current assets (property, plant and equipment) of R735 000; current assets totalling R543 900 (inventories R241 500, trade and other receivables R206 850, cash and cash equivalents R95 550); total assets of R1 278 900; equity (capital) of R605 325; total liabilities of R673 575, comprising non-current liabilities (long-term borrowings) of R409 500 and current liabilities (trade and other payables) of R264 075; and total equity and liabilities of R1 278 900. Using the financial statements of Vukani Traders for the year ended 31 January 2012, calculate the profit margin, showing the formula and all calculations, and round your answer off to 2 decimal places where applicable.