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Financial Reporting and Analysis Final OSA
Financial Reporting and Analysis Final OSA
Financial Reporting and Analysis Final OSA
REQUIRED
Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at 31
July 2023. The notes to the financial statements are not required.
INFORMATION
TRENT LTD
Extract of PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 JULY 2023
Balance Sheet Accounts Section Debit (R) Credit (R)
Ordinary share capital (200 000 shares) 4 000 000
Retained earnings 589 200
Land and buildings 3 904 100
Vehicles (cost) 1 400 000
Equipment (cost) 900 000
Accumulated depreciation on vehicles 510 000
Accumulated depreciation on equipment 397 000
Debentures (12% p.a.; Maturity date 31 July 2028) 1 700 000
Investment (25 000 shares in ABC Limited) 500 000
Trading inventory 1 090 000
Debtors control 360 000
Provision for bad debts 30 000
Bank 287 000
Creditors control 484 000
South African Revenue Services: Company tax 140 000
REQUIRED
Use the information provided below to prepare the Statement of Changes in Equity of Sunray Traders for the
year ended 28 February 2023.
INFORMATION
EXTRACT FROM THE LEDGER OF SUNRAY TRADERS AS AT 28 FEBRUARY 2023
Debit Credit
R R
Capital: Sunny 600 000
Capital: Raymond 400 000
Current a/c: Sunny (01 March 2022) 100 000
Current a/c: Raymond (01 March 2022) 60 000
Drawings: Sunny 500 000
Drawings: Raymond 700 000
Note:
■ Dividends paid and recommended during 2022 amounted to R300 000.
■ All purchases and sales of inventories are on credit.
■ Some of the investments were redeemed during the financial year ended 31 December 2022.
■ Debtors are granted credit terms of 30 days.
QUESTION 5 (20 MARKS)
REQUIRED
Use the information provided in QUESTION 4 to answer the following questions:
5.1 Calculate the following ratios (expressed to two decimal places) for 2022 only. Note: Use formulas
provided in the formula sheet only (that appear after QUESTION 5).
5.1.1 Gross margin (2 marks)
5.1.2 Dividend per share (2 marks)
5.1.3 Return on assets (2 marks)
5.1.4 Current ratio (2 marks)
5.1.5 Acid test ratio (2 marks)
5.1.6 Debt to equity (2 marks)
5.1.7 Creditor payment period (2 marks)
5.2 Comment on the following ratios:
2022 2021
5.2.1 Inventory turnover 3.10 times 6.35 times (2 marks)
5.2.2 Debtors collection period 56.41 days 29.45 days (2 marks)
5.2.3 Return on equity 13.11% 18.80% (2 marks)
END OF PAPER
FORMULA SHEET