ALL questions. QUESTION 1 [100 MARKS] Accounts receivable Cash (25 Marks) 1 300 000 1 100 000 235 000 6 500 000 194 500 6 680 000 REQUIRED Study the Statement of Financial Position as at 31 December 2021 and 2020 before answering the following questions: EQUITY AND LIABILITIES 1.1 Calculate the amount that would be reflected as "Working capital changes" in the Statement of Cash Flows for the year ended 31 December 2021. Equity Share capital Retained earnings 745 000 2 380 000 630 000 4 450 000 (4 marks) 1.2 Did the company expand its operations during 2021? Motivate your answer. (3 marks) Shareholders' equity 3 125 000 5 080 000 1.3 1.4 Is the long-term loan correctly disclosed in the Statement of Financial Position? Explain. Is the company in good financial health? Motivate your answer by referring to at least SIX (6) items on the statement. Ratics are not required. (2 marks) Non-current liabilities Long-term loan 2 580 000 880 000 (12 marks) 1,5 Calculate the ratios (expressed to two decimal places) that would reflect the following: 1.5.1 A measure of the company's ability to settle its short-term obligations within twelve months. 1.5.2 A measure of the amount of total assets that are financed by creditors instead of investors. (2 marks) (2 marks) Current liabilities Accounts payable Other current liabilities 95 000 700 000 120 000 600.000 6 500 000 6 680 000 INFORMATION Lomax Ltd commenced operations at the start of 2020 manufacturing only standard-sized bricks for the building industry. It's financial position at the end of 2020 and 2021 is evident in the statements provided below: LOMAX LTD STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Non-current assets Note 1. 2. There was no significant change in the sales figures over the two-year period. R240 000 of the long-term loan is expected to be repaid during 2022. 2021 2020 R R Property, plant and equipment (Cost) ? 2 Accumulated depreciation (500 000) (365 000) Carrying value ? ? 2 700 000 3 150 000 Investments Current assets Inventories 193 500 29 000