FACULTY OF ECONOMIC AND FINANCIAL SCIENCE
DEPARTMENT OF COMMERCIAL ACCOUNTING
BFB33B3 / CFM22A2 / CFM2AA2
REVISION GUIDE
SEMESTER
, BFB33B3 / CFM22A2 / CFM2AA2: REVISION
1. Financial statement analysis
Typical Limited
Statement of Comprehensive Income
20.2 20.1
Rm
Turnover 3 573 2 320
Cost of sales 2 036 1 206
Gross profit 1 537 1 114
Operating expenses 1 255 696
Profit before interest and tax 282 418
Finance expense 100 80
Profit before tax 182 338
Taxation 54 101
Net profit 128 237
Ordinary dividends 53 99
Retained earnings 75 138
Statement of Financial Position Rm 20.2 20.1
Non-current assets 1 227 1 137
Current assets 208 183
Inventory 65 60
Accounts receivable 122 108
Cash and bank 21 15
Share capital 500 500
Retained income 415 340
Total shareholders’ funds 915 840
Long term liabilities 400 380
Current liabilities 120 100
Accounts payable 98 88
Short term borrowings 22 12
Page 2 of 30
, BFB33B3 / CFM22A2 / CFM2AA2: REVISION
Additional information:
Market closing price was R2.80 and 3.75 for 20.2 and 20.1 respectively.
Number of shares in issue was 500m at a par value of R1 each.
REQUIRED:
Part A
Calculate and interpret all investment ratios for both years.
Part B
Calculate and interpret all working capital ratios assuming 365 days per annum.
Shown below is the sales forecast for CPR Ltd for the first four months of the coming year.
Jan Feb Mar Apr
Cash sales R15 R24 R18 R14
000 000 000 000
Credit sales R100 R120 R90 R70
000 000 000 000
On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale and the remainder is paid two months
after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:
Page 3 of 30
DEPARTMENT OF COMMERCIAL ACCOUNTING
BFB33B3 / CFM22A2 / CFM2AA2
REVISION GUIDE
SEMESTER
, BFB33B3 / CFM22A2 / CFM2AA2: REVISION
1. Financial statement analysis
Typical Limited
Statement of Comprehensive Income
20.2 20.1
Rm
Turnover 3 573 2 320
Cost of sales 2 036 1 206
Gross profit 1 537 1 114
Operating expenses 1 255 696
Profit before interest and tax 282 418
Finance expense 100 80
Profit before tax 182 338
Taxation 54 101
Net profit 128 237
Ordinary dividends 53 99
Retained earnings 75 138
Statement of Financial Position Rm 20.2 20.1
Non-current assets 1 227 1 137
Current assets 208 183
Inventory 65 60
Accounts receivable 122 108
Cash and bank 21 15
Share capital 500 500
Retained income 415 340
Total shareholders’ funds 915 840
Long term liabilities 400 380
Current liabilities 120 100
Accounts payable 98 88
Short term borrowings 22 12
Page 2 of 30
, BFB33B3 / CFM22A2 / CFM2AA2: REVISION
Additional information:
Market closing price was R2.80 and 3.75 for 20.2 and 20.1 respectively.
Number of shares in issue was 500m at a par value of R1 each.
REQUIRED:
Part A
Calculate and interpret all investment ratios for both years.
Part B
Calculate and interpret all working capital ratios assuming 365 days per annum.
Shown below is the sales forecast for CPR Ltd for the first four months of the coming year.
Jan Feb Mar Apr
Cash sales R15 R24 R18 R14
000 000 000 000
Credit sales R100 R120 R90 R70
000 000 000 000
On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale and the remainder is paid two months
after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:
Page 3 of 30
