CFM22A2 CFM2AA2 REVISION DOC SOLUTIONS 2016 (1).pdf (CFM)

FACULTY OF ECONOMIC AND FINANCIAL SCIENCE

DEPARTMENT OF COMMERCIAL ACCOUNTING

BFB33B3 / CFM22A2 / CFM2AA2

REVISION GUIDE SOLUTIONS

SEMESTER

, BFB33B3/CFM22A2/CFM2AA2: REVISION SOLUTIONS


1. FINANCIAL STATEMENT ANALYSIS
Investment ratios

20.2 20.1

EPS R 128.00 R 237.00
500 500

R 0.26 R 0.47

P/E R 2.80 R 3.75
R 0.26 R 0.47

10.77 times 7.98 times

DIVIDENDS PER SHARE R 53.00 R 99.00
500 500

R 0.11 per share R0.20 per share

DIVIDEND COVERAGE R 128.00 R 237.00
R 53.00 R 99.00

2.42 times 2.39 times

DIVIDEND PAYOUT R 53.00 R 99.00
R 128.00 R 237.00

0.41 times 0.42 times
41% 42%

MRKT PRICE TO BV R 1 400.00 R 1 875.00
R 915.00 R 840.00

1.53 times 2.23 times

, BFB33B3/CFM22A2/CFM2AA2: REVISION SOLUTIONS

WORKING CAPITAL RATIOS

STATEMENT OF FINANCIAL POSITION BALANCES
20.2 20.1 AVERAGES
Inventory R 65.00 R 60.00 R 62.50
Debtors R 122.00 R 108.00 R 115.00
Trade payables R 98.00 R 88.00 R 93.00
Purchases R 2 041.00

Note: Rations and averages have been calculate for 20.2. For 20.1 there are no opening values thus
averages cannot be calculated for the balance sheet numbers.

TURNOVER RATIOS TURNOVER TIME RATIOS
Assumption: 365 days in a year

Inventory R 2 036.00 AAI R 62.50
X 365
R 62.50 R 2 036.00


32.58 times 11.20 days



Debtors R 3 573.00 ACP R 115.00
X 365
R 115.00 R 3 573.00


31.07 times 11.75 days

Trade payables R 2 041.00 APP 93
X 365
R 93.00 2041


21.95 times 16.63 days



Multiple choice answers


CPR cash inflow in March: C - R119 000
Cash receipts in July: A – R220
Firms total cash receipts in November: D – Cannot be determined with the information
provided


Closing cash balance C – R2 500



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