Exam (elaborations)
FIN3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (215721)- DUE 30 September 2024
- Course
- Institution
- Book
FIN3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (215721)- DUE 30 September 2024
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
FIN3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (215721)- DUE 30 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
-
FIN3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (215721)- DUE 30 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
-
FIN3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (215721)- DUE 30 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
Seller
Follow
THEBLAZE1
Reviews received
Content preview
,FIN3702 Assignment 2 (COMPLETE ANSWERS)Semester 2 2024 (215721)- DUE 30 September
2024 ; 100% TRUSTED Complete, trusted solutions
and explanations.
Question 1 Not yet answered Marked out of 1.00 Question 2
Not yet answered Marked out of 1.00 QUIZ The information
below applies to the next four questions. Extracted statement
of fi nancial position for AB Pharmacies Ltd Assets Equity &
Liabilities Current assets R10 000 Current liabilities R5 000 Fixed
assets R20 000 Long-term debt R12 000 Equity R13 000 Total
R30 000 Total R30 000 The company earns 5% on current assets
and 15% on fi xed assets. The fi rm’s current liabilities cost 7%
to maintain and theaverage annual cost of long-term funds is
20%.
To answer the questions related to the financial position of AB
Pharmacies Ltd, let's start by breaking down the information
provided and performing some calculations.
Given Information:
1. Assets:
o Current Assets: R10,000
o Fixed Assets: R20,000
o Total Assets: R30,000
2. Equity & Liabilities:
o Current Liabilities: R5,000
, o Long-term Debt: R12,000
o Equity: R13,000
o Total Liabilities & Equity: R30,000
3. Cost and Returns:
o Earnings on Current Assets: 5%
o Earnings on Fixed Assets: 15%
o Cost to maintain Current Liabilities: 7%
o Cost of Long-term Debt: 20%
Calculations:
1. Earnings from Assets:
o Earnings from Current Assets = 5% of R10,000 = R500
o Earnings from Fixed Assets = 15% of R20,000 = R3,000
2. Total Earnings:
o Total Earnings = R500 + R3,000 = R3,500
3. Costs of Liabilities:
o Cost of Current Liabilities = 7% of R5,000 = R350
o Cost of Long-term Debt = 20% of R12,000 = R2,400
4. Total Costs:
o Total Costs = R350 + R2,400 = R2,750
Net Profit Calculation:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller THEBLAZE1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now