FIN2601 Assignment 1
(COMPLETE ANSWERS)
Semester 1 2025 (185354)
- DUE 17 April 2025
, FIN2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (185354) - DUE
17 April 2025
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,
North West. 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 FIN2601/101/1/2025 5 Cost of goods sold R2 800 000
R4 600 000 Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000 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 6 Gross
profit margin Solvency Average collection period Total
asset turnover Debt ratio You are given the following
(COMPLETE ANSWERS)
Semester 1 2025 (185354)
- DUE 17 April 2025
, FIN2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 (185354) - DUE
17 April 2025
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,
North West. 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 FIN2601/101/1/2025 5 Cost of goods sold R2 800 000
R4 600 000 Gross profit R1 200 000 R1 400 000
Administrative expenses R520 000 R600 000 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 6 Gross
profit margin Solvency Average collection period Total
asset turnover Debt ratio You are given the following
