Question
I need help with this fast please! Mr. K. Dlamini operates Vincent Farm. On 28 February 2022, the last day of his the financial year,
I need help with this fast please!
Mr. K. Dlamini operates Vincent Farm. On 28 February 2022, the last day of his the financial year, Vincent Farms accounts showed the following closing balances:
Asset Accounts:
Bank Account.Dr 14 853 (Cash in bank)
Savings AccountDr 23 673
Breeding cattleDr 124 900
TractorsDr 76 900
ImplementsDr 36 000
Fertilisers in stockDr 4 000
LandDr 500 000
Buildings, fences, etcDr 120 000
Unsold maize in stock.Dr 12 000
J Mafu (for cow sold to him)Dr 2 600
Liabilities Accounts:
Co-op current accountCr 23 456
Fuel account.Cr 5 765
Agribank loan (5 years)Cr 56 250
Agribank loan (25 years)Cr 257 980
Overdue electricity accountCr 1 045
DO THE FOLLOWING:
a) Draw up the balance sheet as at 28 February 2022 ...(40)
b) Differentiate between Current assets, Medium-term assets, and fixed assets. .......... (6)
c) From the Closing Balance Sheet youve drawn, list all the Current assets, and calculate their total value. ............................................................................................................ (6)
d) From the Closing Balance Sheet youve drawn, list all the Current liabilities, and calculate their total value. ............................................................................................. (8)
e) From the Closing Balance Sheet youve drawn, list all the Medium-term assets, and calculate their total value. ............................................................................................. (8)
f) From the Closing Balance Sheet youve drawn, list all the Medium-term liabilities, and calculate their total value. ............................................................................................. (8)
g) Calculate the Current Ratio, and use it to comment on the liquidity position of the business. ....................................................................................................................... (8)
h) Calculate the Net Capital Ratio, and use it to comment on the solvency position of the business.......................................................................................................................... (8)
I) Calculate the Leverage Ratio, and use it to comment on the solvency position of the business.(8)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started