Answer ALL questions.

Read the case study and answer the questions that follow:

CAPRI LIMITED: PERFORMANCE EVALUATION AND PLANNING

For many years Capri Limited has delivered on its quality products promise to consumers, ensuring continued

access to an ever$-$growing range of established and well$-$loved brands. Through a spirit of innovation, the

company continues to deliver new and exciting products in response to the evolving needs of its customers.

Despite its success the management has noted areas for improvement. This is evident in the following

financial statements for the past two years: QUESTION $1$CAPRI LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED $31$ DECEMBER $2021$

$(25$ Marks$)$

REQUIRED

Answer the questions below that are based on the Statement of Cash Flows for the year ended $31$ December

$2021$ provided above:

$1\mathrm{.}1$ Calculate the following:

$1\mathrm{.}1\mathrm{.}1$ Dividends paid

$1\mathrm{.}1\mathrm{.}2$ Cash and cash equivalents at the end of the year

$1\mathrm{.}1\mathrm{.}3$ Carrying$/$Book value of the vehicles sold

$1\mathrm{.}2$ Apart from depreciation $($R$252000),$ identify TWO $(2)$ other adjustments $($with the

amounts$)$ that would be needed to convert to cash from operations.

$(4$ marks$)$

$1\mathrm{.}3$ Comment on the following:

$1\mathrm{.}3\mathrm{.}1$ Cash flows from operating activities R$756000$

$(4$ marks$)$

$1\mathrm{.}3\mathrm{.}2$ Increase in receivables $($R$396000)$

$1\mathrm{.}3\mathrm{.}3$ Cash flows from investing activities $($R$1368000)$

QUESTION $2$

REQUIRED

$2\mathrm{.}1$ Use the statement of financial position as at $31$ December $2022,$ statement of comprehensive income

for the year ended $31$ December $2022$ and additional information for $2022($related to dividends and

shares$)$ to calculate the ratio $($expressed to two decimal places$)$ that would reflect each of the following:

$2\mathrm{.}1\mathrm{.}1$ The extent to which the claims of the short$-$term creditors are covered by assets that can

be translated into cash in the short term

$2\mathrm{.}1\mathrm{.}2$ The extent to which long$-$term debt is covered by shareholders' funds

$2\mathrm{.}1\mathrm{.}3$ The amount of funds available relative to sales, to pay the company's expenses other

than its cost of sales $($expressed as a percentage$)$

$(3$ marks$)$

$2\mathrm{.}1\mathrm{.}4$ The distributions during the period allocated to each ordinary share issued

$2\mathrm{.}1\mathrm{.}5$ An indication of the percentage of the profit that has been put back into the company

$2\mathrm{.}1\mathrm{.}6$ The ratio of a company's current stock price to its earnings per share

$2\mathrm{.}2$ Suggest TWO $(2)$ ways of making an improvement with regard to each of the following ratios:

$2\mathrm{.}2\mathrm{.}1$ Debtor collection period