QUESTION $1$

$(25$ MARKS$)$

Study the Statement of Comprehensive Income of Colatonic Ltd for $2023$ and $2022$ and answer the following

questions:

$1\mathrm{.}1$

$1\mathrm{.}1\mathrm{.}1$

$1\mathrm{.}1\mathrm{.}2$

$1\mathrm{.}2$

$1\mathrm{.}3$

$1\mathrm{.}4$

$1\mathrm{.}5$

$1\mathrm{.}6$

$1\mathrm{.}6\mathrm{.}1$

$1\mathrm{.}6\mathrm{.}2$

$1\mathrm{.}6\mathrm{.}3$

What evidence does the statement of comprehensive income for the year ended

$31$ December $2023$ provide for each of the following? $($Include calculations to support

your answer.$)$

Increase in investment of R$400000$

Increase in the loan balance of R$400000$

If the return on capital employed of Colatonic Ltd is greater than the interest rate on the

loan how would this be interpreted by management?

Comment on the decrease in selling, general and administrative expenses.

Comment on the financial result of the company.

Suggest TWO $(2)$ ways in which the company can improve its net profit margin ratio.

What amounts would appear in the statement of cash flows for the year ended

$31$ December $2023$ in respect of the following? $($Show all calculations.$)$

Dividends paid

Company tax paid

Net change in cash and cash equivalents $($Also state if it is an increase or decrease.$)$

$(3$ marks$)$

$(3$ marks$)$

$(3$ marks$)$

$(2$ marks$)$

$(3$ marks$)$

$(2$ marks$)$

$(3$ marks$)$

$(3$ marks$)$

$(3$ marks$)$