FINAL ONLINE SUMMATIVE ASSESSMENT PROGRAMME Bachelor of Business Administration Honours Postgraduate Diploma in Business Management Postgraduate Diploma in Family Business Management MODULE Accounting and Financial Management YEAR One (1) INTAKE July 2023 DATE 13 May 2024 Answer ALL the Questions in this Paper [100 Marks] QUESTION 1 (20 Marks) REQUIRED Study the information given below and answer the following questions: 1.1 Calculate the net cash flow from financing activities. Also state whether it is a net cash inflow or net cash outflow. (2 marks) 1.2 Calculate the amount that would appear as "Working capital changes" in the Statement of Cash Flows of Fiona Limited. (4 marks) 1.3 Calculate the percentage increase in operating expenses over the two-year period and comment on your answer. (2 marks) 1.4 Comment on the following items over the two-year period. (No ratios are required.) 1.4.1 Non-current assets (4 marks) 1.4.2 Inventories (4 marks) 1.4.3 Accounts receivable (4 marks) INFORMATION The following information was obtained from the financial records of Fiona Limited: Fiona Limited Statement of Comprehensive Income for the year ended 31 December: 2023 (R) 2022 (R) Sales 19 000 000 18 000 000 Cost of sales (10 000 000) (9 800 000) Gross profit 9 000 000 8 200 000 Operating expenses (5 500 000) (5 200 000) Operating profit 3 500 000 3 000 000 Interest expense (240 000) (360 000) Profit before tax 3 260 000 2 640 000 Company tax (880 200) (739 200) Profit after tax 2 379 800 1 900 800 Fiona Limited Statement of Financial Position as at 31 December: 2023 (R) 2022 (R) ASSETS Non-current assets 2 500 000 3 000 000 Property, plant and equipment 2 500 000 3 000 000 Current assets 19 500 000 13 600 000 Inventories 12 000 000 8 000 000 Accounts receivable 6 500 000 3 600 000 Cash 1 000 000 2 000 000 Total assets 22 000 000 16 600 000 EQUITY AND LIABILITIES Equity 16 000 000 10 600 000 Ordinary share capital 12 000 000 8 000 000 Retained earnings 4 000 000 2 600 000 Non-current liabilities 2 000 000 3 000 000 Long-term loan (12%) 2 000 000 3 000 000 Current liabilities 4 000 000 3 000 000 Accounts payable 3 444 000 2 616 000 Dividends payable 556 000 384 000 Total equity and liabilities 22 000 000 16 600 000 Additional information 1. All purchases and sales of inventories are on credit. 2. Depreciation for the year ended 31 December 2023 amounted to R500 000. 3. Interim dividends paid out during the financial year ended 31 December 2023 amounted to R423 800. 4. Credit terms to debtors are 30 days and credit terms from suppliers are 60 days.