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    Activity 8 (Q2 NSC 2020 (1) Sep 2021) ENG

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    8yscmvdjx9
    This document provides a study pack solution for the 2022 Accounting Grade 12 exam. It includes solutions to various accounting ratio and cash flow statement calculation questions. For question 8.2.1, it calculates the debt-equity ratio, earnings per share, dividend payout rate, and return on average equity for Orange Ltd. For question 8.2.2, it provides the cash flow statement for Orange Ltd on February 29, 2020, calculating the cash effects of operating, investing, and financing activities, as well as the net change in cash and cash equivalents. The document contains detailed workings and answers for students to check their understanding of preparing accounting ratios and cash flow statements.

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    Activity 8 (Q2 NSC 2020 (1) Sep 2021) ENG

    Uploaded by

    8yscmvdjx9
    11 views2 pages
    This document provides a study pack solution for the 2022 Accounting Grade 12 exam. It includes solutions to various accounting ratio and cash flow statement calculation questions. For question 8.2.1, it calculates the debt-equity ratio, earnings per share, dividend payout rate, and return on average equity for Orange Ltd. For question 8.2.2, it provides the cash flow statement for Orange Ltd on February 29, 2020, calculating the cash effects of operating, investing, and financing activities, as well as the net change in cash and cash equivalents. The document contains detailed workings and answers for students to check their understanding of preparing accounting ratios and cash flow statements.

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    This document provides a study pack solution for the 2022 Accounting Grade 12 exam. It includes solutions to various accounting ratio and cash flow statement calculation questions. For question 8.2.1, it calculates the debt-equity ratio, earnings per share, dividend payout rate, and return on average equity for Orange Ltd. For question 8.2.2, it provides the cash flow statement for Orange Ltd on February 29, 2020, calculating the cash effects of operating, investing, and financing activities, as well as the net change in cash and cash equivalents. The document contains detailed workings and answers for students to check their understanding of preparing accounting ratios and cash flow statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11 views2 pages

    Activity 8 (Q2 NSC 2020 (1) Sep 2021) ENG

    Uploaded by

    8yscmvdjx9
    This document provides a study pack solution for the 2022 Accounting Grade 12 exam. It includes solutions to various accounting ratio and cash flow statement calculation questions. For question 8.2.1, it calculates the debt-equity ratio, earnings per share, dividend payout rate, and return on average equity for Orange Ltd. For question 8.2.2, it provides the cash flow statement for Orange Ltd on February 29, 2020, calculating the cash effects of operating, investing, and financing activities, as well as the net change in cash and cash equivalents. The document contains detailed workings and answers for students to check their understanding of preparing accounting ratios and cash flow statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    2022 Accounting Gr 12 Study Pack Solution

    Activity 8 (NSC Nov 2020 (1) or Sept 2021, Q2)

    8.1
    8.1.1 D Directors Report

    8.1.2 B Statement of Comprehensive Income

    8.1.3 C Statement of Financial Position


    3

    8.2 ORANGE LTD


    8.2.1 Calculate on 29 February 2020:
    Debt-equity ratio
    Workings Answer

    900 000 : 8 980 300 0,1 : 1 


      one part correct;
    in the form x : 1
    3
    Earnings per share (EPS)
    Workings Answer
    one part
    968 800  x 100* correct
    1 000 000  96,9 cents 
    (800 000 + 200 000) Do not accept 910 000 OR 97 cents
    Accept R0,97
    4
    Dividend pay-out rate
    Workings Answer
    (28 + 12) (280 000 + 120 000)
    40 cents  x 100* OR 400 000 x 100 41,3% 
    *one part correct
    96,9 cents see EPS above 968 800 Must indicate %
    Or 97 cents
    3
    % return on average equity (ROSHE)
    Workings Answer

    968 800  x 100* 11,8% 


    *one part correct
    ½ (8 980 300  + 7 411 500 ) % sign not necessary
    16 391 800 two marks Accept 12%
    8 195 900 two marks

    * ensure that a candidate does not get full marks if ½ is omitted 4


    * x 100 is not regarded as ‘one part correct’
    2022 Accounting Gr 12 Study Pack Solution

    8.2.2 CASH FLOW STATEMENT ON 29 FEBRUARY 2020

    CASH EFFECTS OF OPERATING ACTIVITIES


    Cash generated from operations
    Interest paid (126 000)

    Dividends paid (440 000)


    Income tax paid
    23 800  + 415 200  + 4 500  or
    – 23 800 – 415 200 – 4 500
    (443 500) * 4
    Be aware of alternative calculation methods, e.g. ledger account; brackets
    CASH EFFECTS OF INVESTING ACTIVITIES
    Fixed assets purchased
    9 528 300 + 234 000 + 48 000 – 8 320 300  OR
    – 9 528 300 – 234 000 – 48 000 + 8 320 300
    (1 490 000) * 5
    Be aware of alternative calculation methods, e.g. ledger or note format, brackets

    Proceeds of sale of fixed assets 48 000

    Decrease in fixed deposits 400 000

    CASH EFFECTS OF FINANCING ACTIVITIES


    Proceeds of shares issued
    8 281 000  + 819 000  – 7 200 000  1 900 000 * 5
    90 000 x 9,10
    Funds used to repurchase shares
    819 000  + 81 000  OR 90 000 x 10 (900 000) *
    see above (9,10 + 0,90)

    Change in loans / Decrease in loans 1 200 000 – 900 000 (300 000) 
    10

    Net change in cash and cash equivalents inspect, operation 271 500 

    Cash (Opening balance) – 220 000 + 5 000 (215 000) 

    Cash (closing balance) 4 56 500  23


    *one part correct; with the correct use of brackets / no brackets
    If part of workings is reflected as a final answer, award the working marks allocated for that part
    If the correct final answer is presented without the correct use of brackets, award all working marks, even if workings are
    not provided e.g. 3 / 4 for 443 500 iro income tax paid.
    Misplaced items: mark workings only

    TOTAL MARKS
    40

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