SECTION A $[100$ MARKS$]$

Answer ALL the questions in this section.

QUESTION $1(40$ Marks$)$

The following information relates to Mlungisi Pty Ltd$.$

INFORMATION

$20222021$

Fixed Assets $($Carrying Value$)4,137,7002,598,300$

Financial Assets $($Fixed Deposit$)350,000600,000$

Current Assets $662,300575,500$

Inventory $322,000345,000$

Trade and other receivables $245,000228,000$

SARS: Income tax $6,400-$

Cash and cash equivalents $88,9002,500$

Shareholder's Equity $3,439,5002,718,000$

Ordinary share capital $2,967,0002,520,000$

Retained Earnings $472,500198,000$

Non$-$current liabilities $1,200,000500,000$

Current liabilities $510,500555,800$

Trade and other payables $323,000285,000$

shareholders for dividend $187,500108,000$

SARS: Income tax $-9,800$

Bank overdraft $-153,000$

$2022$

Gross profit $2,040,000$

Depreciation $215,100$

Operating Profit $1,300,000$

Interest Expense $132,000$

Net profit before tax $1,175,000$

Net profit after tax $846,000$

Share Capital:

$$ Authorized share capital consists of $800000$ ordinary shares.

$150000$ new ordinary shares were issued on $1$ October $2021.$

$60000$ ordinary shares were repurchased on $1$ January $2021$ at $90$ cents above the average issue price of R$4,30.$

$$ On $28$ February $2022$ the share register reflected that a total of $690000$ shares had been issued to date.

Fixed assets:

$$ Additional property was purchased for R$2100000.$ No other fixed assets were purchased.

$$ Equipment was sold at carrying value.

REQUIRED:

Calculate the following figures that will appear on the Cash Flow Statement:

$1\mathrm{.}1$ Income tax paid. $(5$ Marks$)$

$1\mathrm{.}2$ Proceeds from disposal of fixed assets $($carrying value$).(5$ Marks$)$

$1\mathrm{.}3$ Net change in cash and cash equivalents. Indicate whether this is a net inflow or net outflow of cash. $(5$ Marks$)$

$1\mathrm{.}4$ Complete the section of the Cash Flow Statement for cash effects of financing activities. $(12$ Marks$)$

Calculate the following for the financial year ended $28$ February $2022.$

$1\mathrm{.}5$ Acid$-$test ratio. $(5$ Marks$)$

$1\mathrm{.}6$ Return on shareholders' equity $($ROSHE$)($Use average equity in your calculation.$)(5$ Marks$)$

$1\mathrm{.}7$ Net asset value $($NAV$)$ per share. $(3$ Marks$)$