FAC 1601 ASSIGNMENT 4 OF 2021
Part 1
71000−36600
1 Acid test ratio 27200
= 𝟏. 𝟐𝟔
42000−1600
2 Return on Asserts = 17.93
145000
42000−16000−4000 22000
3 Return on Equites 8200+48500+10000
= 140500 = 32.74
27200
4 Debt-Equity 82000+48500+10000
= 19.57
5 Ratio on efficiency of business in managing its investment in asserts and in generating return to
owners Return on Asserts
6 The quick ratio elements inventories form numerator
7 Credit policy may be too lenient
Part 2
1 Profit before tax
Profit for the year 597 600
Add Income tax 232 100
Profit before tax 829 700
2 Total Non-Cash Items
Profit on Sale of furniture (900)
Loss on sale of listed investment 3600
Fair Value gain (Furniture) (14900)
Depreciation 51500
Loss on Sale of non-current assets 12100
51400
3 Separately disclosable items
Interest expense 11500
Divided Income (8900)
2600
4 Increase (decrease in inventory) (115 700-77200)
(38200) Increase
, 5 Trade receivables (66400-77900) = 11500 decrease
6 Trade payables (59900-48000) 11900 Increase
7 Accrued expense (7100-1800) = 5300 Increase
8 Prepaid expense (7900-5500) (2400) Increase
9 Interest paid (11500)
10 Income tax paid
Opening balance Tax payable 103 800
Income tax expense 232 100
Closing Balance tax payable 46 100
Bank 81 400
11 Dividend received 8 400
12. Dividend Paid 36 610
13. Acquisition of listed investment
Fair value of investment 168 700
Less Fair value gain (14 900)
Add addition 12 000
Bank 165 800
14. Repeat of 13 165 800
15. Proceeds from listed investments
(4000*3)-3600) 8 400
16. Repeat of 15 8 400
17 Loan advanced to shareholders
Balance 2019 13 800
Balance 2020 (47 900)
Bank 34 100
18 repeats of 17 34 100
19 Replacement of furniture
Part 1
71000−36600
1 Acid test ratio 27200
= 𝟏. 𝟐𝟔
42000−1600
2 Return on Asserts = 17.93
145000
42000−16000−4000 22000
3 Return on Equites 8200+48500+10000
= 140500 = 32.74
27200
4 Debt-Equity 82000+48500+10000
= 19.57
5 Ratio on efficiency of business in managing its investment in asserts and in generating return to
owners Return on Asserts
6 The quick ratio elements inventories form numerator
7 Credit policy may be too lenient
Part 2
1 Profit before tax
Profit for the year 597 600
Add Income tax 232 100
Profit before tax 829 700
2 Total Non-Cash Items
Profit on Sale of furniture (900)
Loss on sale of listed investment 3600
Fair Value gain (Furniture) (14900)
Depreciation 51500
Loss on Sale of non-current assets 12100
51400
3 Separately disclosable items
Interest expense 11500
Divided Income (8900)
2600
4 Increase (decrease in inventory) (115 700-77200)
(38200) Increase
, 5 Trade receivables (66400-77900) = 11500 decrease
6 Trade payables (59900-48000) 11900 Increase
7 Accrued expense (7100-1800) = 5300 Increase
8 Prepaid expense (7900-5500) (2400) Increase
9 Interest paid (11500)
10 Income tax paid
Opening balance Tax payable 103 800
Income tax expense 232 100
Closing Balance tax payable 46 100
Bank 81 400
11 Dividend received 8 400
12. Dividend Paid 36 610
13. Acquisition of listed investment
Fair value of investment 168 700
Less Fair value gain (14 900)
Add addition 12 000
Bank 165 800
14. Repeat of 13 165 800
15. Proceeds from listed investments
(4000*3)-3600) 8 400
16. Repeat of 15 8 400
17 Loan advanced to shareholders
Balance 2019 13 800
Balance 2020 (47 900)
Bank 34 100
18 repeats of 17 34 100
19 Replacement of furniture
