2.2. The following are the statements of financial position and extracts from the statement of comprehensive...

  

 

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2.2. The following are the statements of financial position and extracts from the statement of comprehensive income provided by Keith Corporation: Keith Corporation Statements of Financial Position as at 31 December 2017 and 2018 ASSETS 2018 2017 Non-current assets R'000 R'000 Gross non-current assets 29 500 28 100 Accumulated depreciation 14 700 13 100 Net non-current assets 14 800 15 000 Current assets Inventories 2 900 2 800 Cash and cash equilvalents 3 300 2 200 Trade receivables 2 000 1 800 Total current assets 8 200 6 800 Total assets 23 000 21 800 EQUITY AND LIABILITIES Share capital 10 000 10 000 Retained earnings 3 400 2 800 Total equity 13 400 12 800 Non-current liabilities Long-term loan 5 000 5 000 Current liabilities Trade and other payables 1 600 1 500 Short-term borrowings 2 800 2 200 Accruals 200 300 Total current labilities 4 600 4 000 Total liabilities 9 600 9 000 Total equity and llabilities 23 000 21 800 Extracts: Statement of Comprehensive Income for the period 2018 Depreciation expense 1 600 000 Earnings before interest and taxes 2 700 000 Finance cost 367 000 Net profit after taxes 1 400 000 Additional information: Tax rate - 30% Required: Show all calculations and round answers off to the closest whole number. 2.2.1. Calculate the company's net operating profit after taxes (NOPAT) for the year ending 31 December 2018. (3) 2.2.2. Calculate the company's operating cash flow (OCF) for the year ending 31 December 2018. (3) 2.2.3. Calculate the company's free cash flow (FCF) for the year ending 31 December 2018. (6) 2.2. The following are the statements of financial position and extracts from the statement of comprehensive income provided by Keith Corporation: Keith Corporation Statements of Financial Position as at 31 December 2017 and 2018 ASSETS 2018 2017 Non-current assets R'000 R'000 Gross non-current assets 29 500 28 100 Accumulated depreciation 14 700 13 100 Net non-current assets 14 800 15 000 Current assets Inventories 2 900 2 800 Cash and cash equilvalents 3 300 2 200 Trade receivables 2 000 1 800 Total current assets 8 200 6 800 Total assets 23 000 21 800 EQUITY AND LIABILITIES Share capital 10 000 10 000 Retained earnings 3 400 2 800 Total equity 13 400 12 800 Non-current liabilities Long-term loan 5 000 5 000 Current liabilities Trade and other payables 1 600 1 500 Short-term borrowings 2 800 2 200 Accruals 200 300 Total current labilities 4 600 4 000 Total liabilities 9 600 9 000 Total equity and llabilities 23 000 21 800 Extracts: Statement of Comprehensive Income for the period 2018 Depreciation expense 1 600 000 Earnings before interest and taxes 2 700 000 Finance cost 367 000 Net profit after taxes 1 400 000 Additional information: Tax rate - 30% Required: Show all calculations and round answers off to the closest whole number. 2.2.1. Calculate the company's net operating profit after taxes (NOPAT) for the year ending 31 December 2018. (3) 2.2.2. Calculate the company's operating cash flow (OCF) for the year ending 31 December 2018. (3) 2.2.3. Calculate the company's free cash flow (FCF) for the year ending 31 December 2018. (6)

Answer rating: 100% (QA)

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