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Q1— Section header —
1.1xplain how the Creditors Reconciliation Statement can assist the business in terms of their internal control measures. State TWO points. WO valid points It will assist t he business in detecting errors/
Q2— Section header —
2.1CONCEPTS
2.1.1False
2.1.2False
2.1.3True
2.2STAR WHEELS MANUFACTURERS
2.2.1DIRECT LABOUR COST Basic salary (14 x 7 000\ x 12 98 000 one part correct 1 176 000 Overtime (14 x 144\ x 65 UIF contributions (1 176 000 x 1%\
2.2.2PRODUCTION COST STATEMENT FOR THE YEAR ENDED DECEMBER 2015. Direct (raw\ materials cost 2 100 000 Direct labour cost
2.3NUTRITIOUS EATS
2.3.1Calculate the break even point for the year ended October 2015. = 61 333 or 61 334 units one part correct (28
2.3.2Should the business be satisfied with the number of units that they have produced and sold during the current financial year? xplain. Quote figures. Yes/No Reason with figures Reasons for
2.3.3Give TWO possible reasons for the increase in the direct material cost per unit in the current financial year. Any two suitable reasons Due to the effects of inflation, price of raw materials incr eased.
2.3.4Craig suggests that, in order to improve financial results in the new financial year, the quantity of cereal per box must be reduced by 10% and the selling price must remain the same. Give TWO valid reasons why
Q3— Section header —
3.1VAT CONCEPTS
3.1.1Output VAT
3.1.2South African Revenue Services (SARS\
3.1.30% (Zero\
3.2VAT CALCULATIONS Calculate the correct amount of VAT the business has to pay. Show ALL workings. 43 820 + (1 330 + 2 604 + 112 + 756 (184
3.3INVENTORY VALUATION
3.3.1(a\ Calculate the closing stock of Johx watches on August 2015. 1 x 6 500 5 x 6 800 2 x 7 300 3 x 7 800 6 500
3.3.2(a\ Calculate the closing stock of Kwatz watches for the year ended August 2015. 304 150 (3 marks\ 32 300 + 259 900 + 11 950
3.3.3Explain why the business uses different methods to value each type of watch. State ONE valid point. One valid point Johx is sold at a high value. Small quantities are purchased. Each item can be monitored individually.
Q4— Section header —
4.1MUSICA LIMITED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015 Sales (8 412 000 1 600 One part correct 8 298 400
4.2TRADE AND OTHER RECEIVABLES Debtors control (125 000 600 2 025 2 475 (4 500 2 marks\ One part correct
4.3AUDIT REPORT
4.3.1The a udit report is an example of a/an (qualified/unqualified/disclaimer of opinion\ audit report. Disclaimer of opinion
4.3.2Who is the audit report addressed to? Give a reason for your answer. Shareholders They are the owners of the company and have appointed the auditors
4.3.3xplain why it is likely that this audit report will have a negative effect on the value of the shares of this company on the JSE Any valid explanation The value of the shares will decrease Shareholders lose confidence in the company and
Q5— Section header —
5.1ASSET DISPOSAL Aug. Equipment Aug. Accumulated depreciation on equipment (38 400 160
5.2No. Calculation Amount (a\ 3 900 000 2 000 1 900 000 (b\ 900 000
5.3.1Calculate the income t ax paid 892 800 347 200 + 17 400 + 35 700 294 100 (One part
5.3Calculate the et change in ash and ash equivalents 549 580 + 92 000 = 641 580 One part orrect
5.4Cash effects o financing activities Proceeds from shares issued (300 000 x R4,50\ 1 350 000 Buy back of shares (40 000 R4,30 One part correct 172 000
5.5.1Calculate the net asset value per share 5 950 800 cents One part correct 1 500 000 5 950 800 407,6
5.5.2Calculate the return on average shareholders equity 892 800 = 17 One part correct 800
5.5.3Calculate the ebt quity ratio 950 000 5 95 800 : 1 One part correct
5.6.1The directors are not satisfied with the liquidity position. Quote and explain THREE relevant financial indicators ( with figures \ to support this statement. Ratio Trend and figures Current ratio increased from 1,8
5.6The directors decided to increase the loan during the current financial year. Explain why this was a good decision. Quote and explain TWO financial indicators ( with figures \ in your answer. Ratio Figures and trend
5.6.3The directors were pleased with the price that the company paid to buy back the 40 000 shares. Give a suitable reason why the directors fel that way. Quote relevant financial indicators with figures \ to support
Q6— Section header —
6.1KOBUS HARDWARE Calculate the missing amounts indicated by (a\ (e\ n the Cash Budget for March and April Calculation Amount (a\ 28 000
6.1
6.2MANAGEMENT OF FIXED ASSETS Identify ONE problem regarding each vehicle/driver. Quote figures to support your answers. Give Kobus ONE point of advice for EACH problem identified. Problem with figures Problem