FAC1601-ASSIGNMENT 4, SEMESTER 2, 2022

FAC1601

ASSIGNMENT 4

SEMESTER 2

2022

, 1. The information below relates to questions 1 – 3:


Njengabo Limited is company in the coal export business and the following information was
extracted from the financial records of this listed company at 28 February 2022, the end of
the financial year.


2022 2021
R R
Other financial liabilities 178 800 181 200
Other financial assets 154 500 125 400
Inventory 89 500 22 600
Trade payables 37 000 28 700
Trade receivables 64 500 47 800




Additional information:


1. Purchases for the year amounted to R310 000 and 51% thereof were on credit.
2. Ratios reported in year ended 28 February 2021:
3. Trade receivables collection period – 66.9 days
4. Trade payables payment period – 64.9 days
5. Inventory turnover rate – 6 times
6. Only 40% of the total sales were cash sales.
7. The gross profit percentage is 35% on sales.


Which of the following alternatives represents the correct trade receivables collection
period of Njengabo Limited for year 2022?


A. 54.00

B. 91.33

C. 82.40

D. 54.20

E. 54.80

, 2. Which of the following alternatives represents the correct trade payables
payment period of Njengabo Limited for year 2022?



A. 38.00

B. 38.66

C. 73.40

D. 38.50

E. 75.84




3. Which of the following alternatives represents the correct inventory turnover
rate of Njengabo Limited for year 2022?


A. 4.00

B. 4.40

C. 4.34

D. 2.17

E. 2.15