Calculate the return on owner's equity, should the owner be satisfied with theThere is no fixed deposit. However, interest income is stated as R12 000 inthe Income Statement. List two components of interest income.1.Calculate amounts in respect of A, B, C, D, E, F and G.2.Calculate the percentage of operating expenses to sales. In 2009, theoperating expense to sales was 60%. Has the situation improved ordeteriorated in 2010. Comment briefly.Calculate the following for 2010 and comment on each. Comparative figuresfor 2009 are provided.3.1 Current Ratio2,57:1- 1,15:1- 3,55:13.2 Acid test ratio3.3 Solvency Ratio4.return. Give two reasons.5.3, INTERPRETATION OF FINANCIAL STATEMENTS1. CAMPERS PARADISE sells tents, camping equipment and other outdoor itemoat a mark-up of 25%.INSTRUCTIONSStudy the information given below to answer the questions which follow.INFORMATIONA. Extract of the INCOME STATEMENT for the vear ended 30 November 2010.Sales2 400 000Cost of SalesGross Profit20 000Other Operating Income200 000Operating ExpensesOperating Profit for yearInterest Expenses12 000Interest IncomeNet Profit for yearB. Balance Sheet as at 30 November 2010,20102009Tangible Assets (Fixed Assets)850 300720 500InventoryTrade and other Receivables480 000562 20088 97524 300Cash and Cash Equipments2 200 0002 000 000Capital400000Net ProfitDrawings35 00012 000Loan: BC Bank320 000350 000Trade and other Payable601 900508 325

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INTERPRETATION OF FINANCIAL STATEMENTS 1. CAMPERS PARADISE sells tents, camping equipment and other outdoor en at a mark-up of 25%. INSTRUCTIONS Study the information given below to answer the questions which follow. INFORMATION A. Extract of the INCOME STATEMENT for the vear ended 30 November 2010. Sales 2 400 000 Cost of Sales Gross Profit 20 000 Other Operating Income 200 000 Operating Expenses C Operating Profit for year Interest Expenses 12 000 Interest Income Net Profit for year B. Balance Sheet as at 30 November 2010. 2010 2009 G Tangible Assets (Fixed Assets) 850 300 720 500 Inventory Trade and other Receivables Cash and Cash Equipments 480 000 562 200 88 975 24 300 2 200 000 2 000 000 Capital Net Profit 400 000 Drawings 35 000 12 000 Loan: BC Bank 320 000 350 000 Trade and other Payable 601 900 508 325

INTERPRETATION OF FINANCIAL STATEMENTS 1. CAMPERS PARADISE sells tents, camping equipment and other outdoor en at a mark-up of 25%. INSTRUCTIONS Study the information given below to answer the questions which follow. INFORMATION A. Extract of the INCOME STATEMENT for the vear ended 30 November 2010. Sales 2 400 000 Cost of Sales Gross Profit 20 000 Other Operating Income 200 000 Operating Expenses C Operating Profit for year Interest Expenses 12 000 Interest Income Net Profit for year B. Balance Sheet as at 30 November 2010. 2010 2009 G Tangible Assets (Fixed Assets) 850 300 720 500 Inventory Trade and other Receivables Cash and Cash Equipments 480 000 562 200 88 975 24 300 2 200 000 2 000 000 Capital Net Profit 400 000 Drawings 35 000 12 000 Loan: BC Bank 320 000 350 000 Trade and other Payable 601 900 508 325

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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