The overtime premium paid to factory workers is usually considered to be
part of Direct costs
financial risk are not directly related to a product and
OSCAR THE TUTOR
will most likely be incurred regardless of of whether a certain product is
manufactured or not.
0737560989 The risk that the company’s cash flows will not be sufficient to cover its
for FAC MAC ECS DSC TAX
financial obligations is known as financial risk .
QMI FIN
INV BNU STA tutorials Economic order quantity refers to the quantity (units) of
inventory that should be ordered every time an order is placed so that the
total inventory cost is minimised.
Inventory turnover ratio measures the speed at which
inventories are turned into debtors.
Credit worthiness refers to the ability of customers to pay
their accounts.
OSCAR THE TUTOR
Credit policy refers to the length of time that
customers will be allowed to pay their accounts.
0737560989
Capital structure ratios are designed to measure the for FAC MAC ECS DSC TAX
extent and the effect to which the company is using debt to finance its QMI FIN
assets. INV BNU STA tutorials
Job costing applies where work is undertaken
according to customer’s requirements.
Under-absorbed occurs when the actual overheads
exceed absorbed overheads.
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,The following is an extract from the financial statements of Lusaka (Pty) Ltd
for the year ended 28 February 2024:
2024
R’000
Cost of sales 42 323
Gross profit 34 155
Operating expenses 17 820
Finance costs 1 617
Income tax 3 267
Capital and reserves 73 095
Long-term (interest-bearing) borrowings 7 425
Bank balance (overdraft) 743
Trade payables 9 445
Non-current assets 75 059
Trade receivables 10 303
Inventory 5 346
Required:
Complete the table below to calculate the following ratios and choose the
nearest correct answer from the list of options provided:
Ratio 2024
Return on assets (ROA)
18%
Debtors’ collection period
49 days
Days' sales inventory held
46 days
Operating profit margin
21%
Quick ratio
1,01:1
Gross profit margin
45%
Debt ratio
19%
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Contact us
, Jabulani is employed by Mollo (Pty) Ltd. The normal working week
of the company is 40 hours. Jabulani's basic wage rate is R60 per
hour. The company pays Jabulani normal time and a half for any
work in excess of 40 hours per week. In the week ending 12 April
2024, Jabulani worked 45 hours.
Additional information:
1. Jabulani makes the following contributions:
Pension fund 7,5% of normal wage
Medical Aid 8% of normal wage
UIF 1% of gross wage
2. The company makes the following contributions:
Pension fund 15% of normal wage
Medical aid 8% of normal wage
UIF 1% of gross wage
3. Jabulani pays PAYE at 18% of his taxable income.
Calculate the missing data and choose the correct answer from
the options provided:
R
Total gross wages 2 850,00
Less: overtime wage 450,00
Normal wages 2 400,00
Less: pension fund contribution 180,00
Taxable wages 2 490,00
Less: Other deductions
PAYE 480,60
Medical aid 192,00
UIF 28,50
Net wage payable 1 970,70
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Pre vi o us
ac t i vi t y
Assessment 5
, Tshiawelo Pty Limited has provided you with the following extract from the financial records for the financial year ended 31 December 2023
R
Cost of sales 2 400 000
Gross profit 40%
Operating expenses 800 000
Interest expense 200 000
Income tax expense 30%
Inventories 800 000
Issued capital 2 000 000
Trade payables 500 000
Trade receivables 600 000
Cash and other equivalents 200 000
Short-term borrowings 500 000
Long-term borrowings 2 000 000
Property Plant and equipment 1 000 000
Required:
Calculate the following ratios by choosing the correct answer from the options provided:
Revenue from sales R4 000 000
Net profit margin 10,5%
Current ratio 1.6 to 1
Quick ratio 0.8 to 1
Debtors’ collection period 54.75 days
Return on assets (ROA) 16.15%
Days’ sales inventory held 121.67 days
Times interest earned ratio 4 times
part of Direct costs
financial risk are not directly related to a product and
OSCAR THE TUTOR
will most likely be incurred regardless of of whether a certain product is
manufactured or not.
0737560989 The risk that the company’s cash flows will not be sufficient to cover its
for FAC MAC ECS DSC TAX
financial obligations is known as financial risk .
QMI FIN
INV BNU STA tutorials Economic order quantity refers to the quantity (units) of
inventory that should be ordered every time an order is placed so that the
total inventory cost is minimised.
Inventory turnover ratio measures the speed at which
inventories are turned into debtors.
Credit worthiness refers to the ability of customers to pay
their accounts.
OSCAR THE TUTOR
Credit policy refers to the length of time that
customers will be allowed to pay their accounts.
0737560989
Capital structure ratios are designed to measure the for FAC MAC ECS DSC TAX
extent and the effect to which the company is using debt to finance its QMI FIN
assets. INV BNU STA tutorials
Job costing applies where work is undertaken
according to customer’s requirements.
Under-absorbed occurs when the actual overheads
exceed absorbed overheads.
Previous page Next page
,The following is an extract from the financial statements of Lusaka (Pty) Ltd
for the year ended 28 February 2024:
2024
R’000
Cost of sales 42 323
Gross profit 34 155
Operating expenses 17 820
Finance costs 1 617
Income tax 3 267
Capital and reserves 73 095
Long-term (interest-bearing) borrowings 7 425
Bank balance (overdraft) 743
Trade payables 9 445
Non-current assets 75 059
Trade receivables 10 303
Inventory 5 346
Required:
Complete the table below to calculate the following ratios and choose the
nearest correct answer from the list of options provided:
Ratio 2024
Return on assets (ROA)
18%
Debtors’ collection period
49 days
Days' sales inventory held
46 days
Operating profit margin
21%
Quick ratio
1,01:1
Gross profit margin
45%
Debt ratio
19%
Previous page Next page
Contact us
, Jabulani is employed by Mollo (Pty) Ltd. The normal working week
of the company is 40 hours. Jabulani's basic wage rate is R60 per
hour. The company pays Jabulani normal time and a half for any
work in excess of 40 hours per week. In the week ending 12 April
2024, Jabulani worked 45 hours.
Additional information:
1. Jabulani makes the following contributions:
Pension fund 7,5% of normal wage
Medical Aid 8% of normal wage
UIF 1% of gross wage
2. The company makes the following contributions:
Pension fund 15% of normal wage
Medical aid 8% of normal wage
UIF 1% of gross wage
3. Jabulani pays PAYE at 18% of his taxable income.
Calculate the missing data and choose the correct answer from
the options provided:
R
Total gross wages 2 850,00
Less: overtime wage 450,00
Normal wages 2 400,00
Less: pension fund contribution 180,00
Taxable wages 2 490,00
Less: Other deductions
PAYE 480,60
Medical aid 192,00
UIF 28,50
Net wage payable 1 970,70
Next page
Pre vi o us
ac t i vi t y
Assessment 5
, Tshiawelo Pty Limited has provided you with the following extract from the financial records for the financial year ended 31 December 2023
R
Cost of sales 2 400 000
Gross profit 40%
Operating expenses 800 000
Interest expense 200 000
Income tax expense 30%
Inventories 800 000
Issued capital 2 000 000
Trade payables 500 000
Trade receivables 600 000
Cash and other equivalents 200 000
Short-term borrowings 500 000
Long-term borrowings 2 000 000
Property Plant and equipment 1 000 000
Required:
Calculate the following ratios by choosing the correct answer from the options provided:
Revenue from sales R4 000 000
Net profit margin 10,5%
Current ratio 1.6 to 1
Quick ratio 0.8 to 1
Debtors’ collection period 54.75 days
Return on assets (ROA) 16.15%
Days’ sales inventory held 121.67 days
Times interest earned ratio 4 times
