MAC3701 ASSIGNMENT 02 WITH ELABORATIONS

MAC3702 ASS1 FORF SEMESTER 1 FOR 2021
Prepared by MR BLESSING K.
Contact details :074 252 3282
Email address:

QUESTION 1

1. Statements (a) and (c)



QUESTION 2

3. Statements (b) and (c)

QUESTION 3

3. Statements (a), (b) and (d)

QUESTION 4

1. Statements (a), (b) and (d)

Question 5

1. Statements (a), (b), (c) and (d)

Question 6

4. 57,41%
Total liabilities (R5 400 000−R2 300 000)
Debt ratio = x 100 = x 100 = 57.41%
Total Assets R5 400 000



Question 7

4. 57,56%
Total liabilities (R2 400 000+R665 000)
Debt ratio = x 100 = x 100 = 57.56%
Total Assets R5 325 000



MR BLESSING K . 074 252 3282 074 252 3282

, Question 8

3. 54,16%

Long−term liabilities
Gearing ratio = x 100
Total capital

(R2 400 000+R270 000)
= x 100
(R2 400 000+R270 000+R2 260 000)

= 54.16%




Question 9

4. 1,16:1
Total Interest bearing debt−Cash
Net Debt:Equity = Equity

(R2 400 000+R270 000−R45 000)
=
R2 260 000

=1.16 : 1
Question 10
Net profit
Net operating profit percentage = x 100 %
Revenue



R3 320 000
= x 100 %
R3 950 000

= 84.05%
Question 11

2. R15 624

Calculations of Net Present Value of existing Bulldozer:


Year 0 Year 1 to 5 Year 6
R R R
Cost price (192 000)
Working capital required (25 300) 25 300

MR BLESSING K . 074 252 3282 074 252 3282