Question 1 — Financial Analysis, Planning & Budgeting (Marks: 60) This case study covers the goals of financial management, financial ratio analysis, and comparative analysis of financial statements. At the end of this specific question, students should be able to: LU1 – Theme 1 Please ensure you research as much as possible on some of the questions in this task. Consult widely beyond the prescribed […]
Posted: September 8, 2024
QUESTION 1 (45 marks)(54 minutes) Trueman Traders applies the periodic inventory recording system and is registered as a VAT vendor. VAT invoices are received and supplied in respect of all transactions. The VAT period of the business ends on equal months (Feb, Apr, Jun, Aug, etc). The owner of Trueman Traders is T Trueman. Trueman Traders entered into the following transactions for July 2022 (Where […]
Posted: August 28, 2024
QUESTION ONE [50] Light It Up (Pty) Ltd engages in the manufacture and retail of luxurious, scented candles. The company started its operations 5 years ago when Anne Bing saw a need in the market for personal care items, specifically these candles. The company hit a slump during the COVID pandemic but quickly began to grow as the hospitality industry started to operate once more. […]
Posted: August 20, 2024
QUESTION 1 (59 marks) Mr. James Storm is an investment consultant employed at Standard Peak Ltd (“Standard Peak”). Each investment consultant of Standard Peak is allocated their own portfolio of existing and new clients. Accordingly, Mr James Storm has also been assigned a portfolio of clients to assist. The following clients allocated to Mr James Storms currently have queries and require assistance: CASE 1: MRS […]
Posted: April 30, 2024
QUESTION 1 (31 marks) RCL Foods Limited (“RCL Foods”) is a South African food manufacturer that produces a wide range of branded foods and private label food products. RCL Foods makes use of its own route-to-market supply chain specialist, called Vector, to distribute its food products. You are provided with the following extracts of RCL Foods’s 2023 Integrated Annual Report: RCL FOODS is the home of […]
Posted: March 28, 2024
Question 1 (20 marks) A company can invest in either Project X or Project Y. The company’s required return is 12%. Assuming no depreciation or taxation, you are required to select either Project X or Project Y. The cost of either Project is R20 million. Year Project X Cash Flow (Rm) Project Y Cash Flow (Rm) 0 -20 -20 1 4 10 2 4 10 […]
Posted: November 29, 2023
QUESTION 1 (12 marks) FutureTech is a software development company that specialises in creating custom business software solutions. The company has a 31 December year end. You are presented with the Statement of Financial Position of FutureTech for the year ended 31 December 2023: Assets 2023 R 2022 R Non-current assets Property, plant, and equipment 100 000 90 000 Investment […]
Posted: October 19, 2023
QUESTION 1 REQUIRED Study the information provided below and answer the following questions. 1.1 Were there any additions to or disposals of property, plant and equipment during the financial year ended 31 December 2022? Motivate your answer. 1.2 Comment on the decrease in retained earnings. 1.3 Comment on FIVE (5) other significant changes that occurred in the cmpany’s financial position during 2022. 1.4 Apart from […]
Posted: October 3, 2023
QUESTION ONE (25 Marks) As a business owner discuss why you would prefer to acquire debt finance that you have been offered by a bank institution. (6 Marks) The pooling of funds principle states that the various sources of finance available to any entity are grouped together and used in total various projects. Discuss the two ways or methods that are used to calculate the […]
Posted: October 2, 2023
QUESTION 1 [30 MARKS] On the 15th of December 2023, Four Roses Pty Ltd is planning its working capital management for January 2024. Beginning January 2024, the predicted financial information is as follows: Item Value (R) Inventory 4 550 000 Trade receivables 4 083 500 Trade payables 1 867 000 Overdraft 2 402 500 For 2024, the company expects to generate sales revenue worth R35 […]
Posted: September 20, 2023
