FIN2601/101/1/2025
Tutorial Letter 101/1/2025
Financial Management FIN2601
Semester 1
Department of Finance, Risk Management and
Banking
IMPORTANT INFORMATION
This tutorial letter contains Assignment one for the module FIN2601
Note: This is a fully online module. It is therefore only available only on myUnisa.
BARCODE
Open Rubric
,The assessments/assignments
Assignment number Format of the assessment Due dates and unique numbers
Assignment 01 Written assessment 17 April 2025
Unique number: 185354
Assignment 02 Quiz assessment 30 April 2025
Unique number: 159627
1.1.1 Assignment 01 – Written assessment (file upload)
Due date: 17 April 2025
Unique number: 185354
Aim: To evaluate your knowledge of some of the fundamental aspects of managerial finance
and important concepts in finance. You will need to study chapters 3 and 7 of your prescribed
book before attempting this assignment.
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,
Northwest. 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
Cost of goods sold R2 800 000 R4 600 000
Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000
2
, FIN2601/101/1/2025
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
Gross profit margin = 1 200 000/4 000 000 x 100 = 1 400 000/6 000 000 x 100
= 30% = 23,33%
Average collection period = 440 000/4 000 000 x 365 = 820 000/6 000 000 x 365
= 40,15 days = 49,88 days
Total asset turnover = 4 000 000/5 500 000 = 6 000 000/7 000 000
= 0,73 = 0,86
3
Tutorial Letter 101/1/2025
Financial Management FIN2601
Semester 1
Department of Finance, Risk Management and
Banking
IMPORTANT INFORMATION
This tutorial letter contains Assignment one for the module FIN2601
Note: This is a fully online module. It is therefore only available only on myUnisa.
BARCODE
Open Rubric
,The assessments/assignments
Assignment number Format of the assessment Due dates and unique numbers
Assignment 01 Written assessment 17 April 2025
Unique number: 185354
Assignment 02 Quiz assessment 30 April 2025
Unique number: 159627
1.1.1 Assignment 01 – Written assessment (file upload)
Due date: 17 April 2025
Unique number: 185354
Aim: To evaluate your knowledge of some of the fundamental aspects of managerial finance
and important concepts in finance. You will need to study chapters 3 and 7 of your prescribed
book before attempting this assignment.
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,
Northwest. 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
Cost of goods sold R2 800 000 R4 600 000
Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000
2
, FIN2601/101/1/2025
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
Gross profit margin = 1 200 000/4 000 000 x 100 = 1 400 000/6 000 000 x 100
= 30% = 23,33%
Average collection period = 440 000/4 000 000 x 365 = 820 000/6 000 000 x 365
= 40,15 days = 49,88 days
Total asset turnover = 4 000 000/5 500 000 = 6 000 000/7 000 000
= 0,73 = 0,86
3
