FIN2601 Assignment 1
(COMPLETE ANSWERS)
Semester 1 2025 (185354) -
DUE 17 April 2025
, QUESTION 1 [18 MARKS] Read the information provided
and then answer the questions that follow. Indicate all
the steps in your calculations – it is NOT enough to
provide only a final answer. Jungle Build Projects is a
relatively young civil engineering company based in
Rustenburg, North West. A month ago, Sherman
Alexander Hemsley was appointed as the financial
manager of the company. He received the company's
yearly financial statistics and was requested to prepare
a report on the success of the business. The report
must be submitted to management. Extract from the
statement of comprehensive income for 31 December
2024 2023 2024 Sales R4 000 000 R6 000 000
FIN2601/101/1/2025 5 Cost of goods sold R2 800 000
R4 600 000 Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000 Earnings
before interest and tax (EBIT) R680 000 R800 000
Extract from the statement of financial position as of 31
December 2024 2023 2024 Trade and other receivables
R440 000 R820 000 Inventories R460 500 R380 000
Cash and cash equivalents R299 500 R300 000 Current
assets R1 200 000 R1 500 000 Total assets R5 500 000
R7 000 000 Total liabilities R2 900 000 R5 000 000 Take
the following into consideration: a) The below table of
ratios provided is applicable for the year 2023 and
2024 b) Assume a 365-day year for the calculations. c)
Apply year end-based figures for inventory. Use the
information above to answer the following questions:
1.1 Use the financial statement above to calculate the
following ratios for 2023 and 2024: (16 marks) Ratio
2023 2024 6 Gross profit margin Solvency Average
collection period Total asset turnover Debt ratio You are
given the following information: 1) The Treasury Bill
rate is 5%. 2) The required return on the market is 8%.
(COMPLETE ANSWERS)
Semester 1 2025 (185354) -
DUE 17 April 2025
, QUESTION 1 [18 MARKS] Read the information provided
and then answer the questions that follow. Indicate all
the steps in your calculations – it is NOT enough to
provide only a final answer. Jungle Build Projects is a
relatively young civil engineering company based in
Rustenburg, North West. A month ago, Sherman
Alexander Hemsley was appointed as the financial
manager of the company. He received the company's
yearly financial statistics and was requested to prepare
a report on the success of the business. The report
must be submitted to management. Extract from the
statement of comprehensive income for 31 December
2024 2023 2024 Sales R4 000 000 R6 000 000
FIN2601/101/1/2025 5 Cost of goods sold R2 800 000
R4 600 000 Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000 Earnings
before interest and tax (EBIT) R680 000 R800 000
Extract from the statement of financial position as of 31
December 2024 2023 2024 Trade and other receivables
R440 000 R820 000 Inventories R460 500 R380 000
Cash and cash equivalents R299 500 R300 000 Current
assets R1 200 000 R1 500 000 Total assets R5 500 000
R7 000 000 Total liabilities R2 900 000 R5 000 000 Take
the following into consideration: a) The below table of
ratios provided is applicable for the year 2023 and
2024 b) Assume a 365-day year for the calculations. c)
Apply year end-based figures for inventory. Use the
information above to answer the following questions:
1.1 Use the financial statement above to calculate the
following ratios for 2023 and 2024: (16 marks) Ratio
2023 2024 6 Gross profit margin Solvency Average
collection period Total asset turnover Debt ratio You are
given the following information: 1) The Treasury Bill
rate is 5%. 2) The required return on the market is 8%.
