Exam (elaborations)
Exam (elaborations) Business Management 1B (BMA11A1)
- Institution
- University Of Johannesburg (UJ)
This document contains calculation questions and answers for Financial Management.
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Income statement 2020R’000
Revenue 23 285 096
Turnover (Sales) 22 070 092
Cost of merchandise sold (17 545 318)
Gross profit 4 524 774
Accounts receivables 10 231 000
Daily credit sales 82 192
Accounts payable 5 270 000
Credit sales 68 493
Operating profit 1 396 039
(Loss)/profit on disposal of property, plant and equipment (9 446)
Profit before financing costs 1 386 593
Net financing costs (57 309)
Financial income 4 922
Interest paid (62 231)
Profit before taxation 1 329 284
Profit for the year 954 575
Cash flow hedges 33 238
Total comprehensive income for the year 993 355
Profit attributable to net profit
Equity holder of the parent company 954 575
Balance Sheet 2020
R’000
ASSETS
Non-current assets 2 009 163
Current assets
5 546 775
Less stock (Inventory) 3 249 914
Cash and cash equivalents 1 871 616
Derivative financial assets 400 738
Total assets 7 555 938
EQUITY AND LIABILITIES
Equity (Total capital employed) 2 012 807
Non-current liabilities (long-term) 308 503
Employee benefits 128 035
Deferred tax liabilities -
Operating lease liability 180 468
Current liabilities 5 234 628
Ordinary dividends 119 501
Shares issued 2 754
Dividends per share 4 339 c
Current market price 9 800c
Total equity and liabilities 7 555 938
, SECTION A: [75 MARKS]
Instructions: Show all calculations and interpret your answers where necessary
by providing the solutions from the income statement and balance sheet
provided
1. Current Ratio (5)
2. Quick Ratio (7)
3. Gross Profit Margin (6)
4. Net Profit Margin (6)
5 Dividend per Share and Dividend Yield (10)
6. Inventory Turnover (5)
7. Average Debtors Collection Period (Days) (5)
8. Average Payment Period (Days) (5)
9. Debt Ratio (10)
10. Debt Equity Ratio (6)
11. Interest Cover Ratio (5)
12. Explain the terms “Fixed Costs”, “Variable Costs” and “Total Cost”’ (3)
13. Explain the term “Financial Management” (2)
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