Exam (elaborations)
MAC3701 Assignment 2 (COMPLETE GUIDELINE) Semester 1 2025 - DUE 16 April 2025
Exam (elaborations) MAC3701 Assignment 2 (COMPLETE GUIDELINE) Semester 1 2025 - DUE 16 April 2025
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[TYPE THE COMPANY NAME]MAC3701 Assignment
2 (COMPLETE
GUIDELINE) Semester
1 2025 - DUE 16 April
2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, QUESTION 1 (100 Marks; 180 Minutes) The Company information below
applies to Parts A, B, C, D, and E of assessment 02. The additional
information provided in each Part only applies to that part of assessment 02.
For each Part below, you must: • Clearly show all your calculations in detail
(marks are awarded for calculations); • Where necessary, indicate irrelevant
amounts/adjustments with an R0 (nil-value); • Round all your workings to
two decimals, except where otherwise stated, and • Ignore the time value of
money and all taxation implications. Company information Pedal Pump (Pty)
Ltd (PP) is a South African company that manufactures and sells both
Standard (SPump) and Booster (BPump) bike floor pumps. The company
prides itself on producing high-quality, durable products catering to urban
and professional cyclists. The company's manufacturing plant is based in
Benoni; they sell locally and export their products to various African and
European markets. The BPump has an added high-pressure aluminium air
chamber that quickly releases air to seat tubeless tyres on the tyre rim. The
manufacturing process primarily involves the melting and extrusion of
aluminium into the pump body and valve head tubing, while reinforced
rubber and rubberised composite are heated and injected into moulds to
create durable handles, hoses, and base plates. PP purchases other minor
components separately and adds them to the manufacturing process. The
company relies on dollar-denominated imports of high-quality aluminium and
rubber, which also have a high carbon footprint. The industry has low
barriers to entry, with stiff competition putting pressure on profit margins.
New South African manufacturing regulations require stricter quality control
and product safety testing, likely increasing operational costs. PP’s
management is considering using cheaper materials to reduce costs and
dependence on imported materials. After paying a generous facilitation fee,
the company obtained a
Assignment Breakdown
Part A: Public Interest Score Calculation
To determine whether PP's financial statements should be audited or reviewed, you'll need to
calculate the company's Public Interest Score (PIS). The PIS is calculated based on the following
criteria:
1. Revenue: Total revenue for the financial year.
2. Employees: Number of employees, including executive directors.
3. Third-Party Liabilities: Total third-party liabilities.
4. Shareholding: Percentage of shares held by the public.Academia+3Course
Sidekick+3Class Ace+3Class Ace
Once you have these figures, you can apply the relevant formula to calculate the PIS and
determine the appropriate level of assurance for the financial statements.
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