MAC3702 ASSIGNMENT 1 OF 2021
1. 1 & 2 (But a, b and c are correct)
2. 1 & 2 (But a, b, c and e are correct)
3. 3
4. 1
5. 1
6. 4
𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕
Debt Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 ∗ 𝟏𝟎𝟎
(5 400 000−2 300 000)
= ∗ 100
5 400 000
= 𝟓𝟕. 𝟒𝟏%
7. 4
𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕
Debt Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 ∗ 𝟏𝟎𝟎
(2 400 000 + 665 000)
= ∗ 100
5 325 000
= 𝟓𝟕. 𝟓𝟔%
8. 3
𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕
Gearing Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕 + 𝑻𝒐𝒕𝒂𝒍 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑬𝒒𝒖𝒊𝒕𝒚 ∗ 𝟏𝟎𝟎
(2 400 000 + 270 000)
= (2 400 000 + 270 000 + 2 260 000) ∗ 100
= 𝟓𝟒. 𝟏𝟔%
, 9. 4
𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕 − 𝑪𝒂𝒔𝒉
Net Debt Equity Ratio = 𝑬𝒒𝒖𝒊𝒕𝒚
(𝟐 𝟒𝟎𝟎 𝟎𝟎𝟎 + 𝟐𝟕𝟎 𝟎𝟎𝟎 − 𝟒𝟓 𝟎𝟎𝟎)
= 𝟐 𝟐𝟔𝟎 𝟎𝟎𝟎
= 𝟏. 𝟏𝟔: 𝟏
10. 1
𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕
Net Operating profit percentage = ∗ 𝟏𝟎𝟎
𝑹𝒆𝒗𝒆𝒏𝒖𝒆
3 320 000
= 3 950 000 ∗ 100
= 𝟖𝟒. 𝟎𝟓%
11. 2
R
Annual net operating income 94 200
Wear & Tear (192 000 ∗ 20%) (38 400)
Taxable Income 55 800
Income tax expense (𝟓𝟓 𝟖𝟎𝟎 ∗ 𝟐𝟖%) 15 624
12. 1
R
Working capital recoupment 25 300
Annual net operating income 94 200
Income tax expense (94 200 ∗ 28%) (26 376)
Net Cash flow after tax 93 124
13. 2
1. 1 & 2 (But a, b and c are correct)
2. 1 & 2 (But a, b, c and e are correct)
3. 3
4. 1
5. 1
6. 4
𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕
Debt Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 ∗ 𝟏𝟎𝟎
(5 400 000−2 300 000)
= ∗ 100
5 400 000
= 𝟓𝟕. 𝟒𝟏%
7. 4
𝑻𝒐𝒕𝒂𝒍 𝑫𝒆𝒃𝒕
Debt Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 ∗ 𝟏𝟎𝟎
(2 400 000 + 665 000)
= ∗ 100
5 325 000
= 𝟓𝟕. 𝟓𝟔%
8. 3
𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕
Gearing Ratio = 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕 + 𝑻𝒐𝒕𝒂𝒍 𝑺𝒉𝒂𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑬𝒒𝒖𝒊𝒕𝒚 ∗ 𝟏𝟎𝟎
(2 400 000 + 270 000)
= (2 400 000 + 270 000 + 2 260 000) ∗ 100
= 𝟓𝟒. 𝟏𝟔%
, 9. 4
𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑩𝒆𝒂𝒓𝒊𝒏𝒈 𝑫𝒆𝒃𝒕 − 𝑪𝒂𝒔𝒉
Net Debt Equity Ratio = 𝑬𝒒𝒖𝒊𝒕𝒚
(𝟐 𝟒𝟎𝟎 𝟎𝟎𝟎 + 𝟐𝟕𝟎 𝟎𝟎𝟎 − 𝟒𝟓 𝟎𝟎𝟎)
= 𝟐 𝟐𝟔𝟎 𝟎𝟎𝟎
= 𝟏. 𝟏𝟔: 𝟏
10. 1
𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕
Net Operating profit percentage = ∗ 𝟏𝟎𝟎
𝑹𝒆𝒗𝒆𝒏𝒖𝒆
3 320 000
= 3 950 000 ∗ 100
= 𝟖𝟒. 𝟎𝟓%
11. 2
R
Annual net operating income 94 200
Wear & Tear (192 000 ∗ 20%) (38 400)
Taxable Income 55 800
Income tax expense (𝟓𝟓 𝟖𝟎𝟎 ∗ 𝟐𝟖%) 15 624
12. 1
R
Working capital recoupment 25 300
Annual net operating income 94 200
Income tax expense (94 200 ∗ 28%) (26 376)
Net Cash flow after tax 93 124
13. 2
