Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional...
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Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks) Techno Steel (Pty) Ltd is a manufacturer of various steel products. The company is considering additional plant investments at the moment. The company has been successful for many years, with the results of 2022 being reminiscent of their performance. As the Cost Accountant of Techno Steel (Pty) Ltd, you compiled the following statement of Financial Position as at 31 August 2022 Assets Non-current assets Property, plant and equipment Current assets Inventory: Finished goods Material Trade receivables Cash in bank Equity and Liabilities Capital and reserves Ordinary share Capital Retained earning Non-current Liabilities Long term loan Current liabilities Trade creditors Bills Payable Provision 2022 R'000 3 290 4 858 1033 690 790 2345 8 148 5 593 2610 2983 1024 1531 441 810 280 8 148 2021 R'000 3 075 4551 2069 900 737 845 7 626 4 578 2610 1968 1368 1680 560 810 310 7 626 You also compiled the following statement of Comprehensive Income for the year ended 31 August 2022 Revenue (all sales are on credit) Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before tax Income tax expense Net profit for the year Depreciation included in cost of goods sold Operating expenses Cost of material used Dividend declared and paid Number of ordinary shares issued Note: key figures as at 31 August 2020: 2022 R'000 9 799 (6 100) 3 699 (1145) 2 554 (204) 2 350 (535) 1815 340 5 100 425 317 2021 R'000 9 460 (6 200) 3 260 (1 118) 2 142 (192) 1950 (415) 1 535 330 5 200 317 317 (a) Capital and reserves (b) Trade receivables (c) Finished goods inventory (d) Materials inventory R 3 850 000 R 721 000 R 2017 000 R 920 000 Required: Calculate the following ratios for 2022 and 2021: Show all formula and calculations: 3.1 Net profit percentage 3.2 Return on assets 3.3 Return on average equity 3.4 Gross profit percentage 3.5 Debtors collection period (Note to the student: show all calculations to earn full marks) (4 marks) (4 marks) (4 marks) (4 marks) (4 marks)
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Related Book For
Accounting Information Systems
ISBN: 9780132871938
11th Edition
Authors: George H. Bodnar, William S. Hopwood
Posted Date:
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