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Part A Doggo Ltd (74 Marks) 1. (2) 2. (10) 3 (3) (3) (3) 4. (8) 5. (5) Calculate the following amounts labelled (A) to

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Part A Doggo Ltd (74 Marks) 1. (2) 2. (10) 3 (3) (3) (3) 4. (8) 5. (5) Calculate the following amounts labelled (A) to (C) for the Cash Flow Statement. Show calculations so part marks can be awarded. (A) Income tax paid (B) Dividends paid (C) Funds used to repurchase shares Complete the note to the Balance Sheet for Ordinary Share Capital on 30 June 2020. Calculate the following financial indicators for the year ended 30 June 2020 to complete the table in information below. Round off all answers to one decimal point. 3.1 % Net profit after tax on turnover 32 % Return on average shareholders' equity 3.3 Debt/equity ratio 3.4 Net asset value (NAV) per share Shareholders expressed concerned about the large payments made towards the loan Explain why you think that this was either a good or bad decision of the directors. Quote TWO financial indicators, relating to risk and gearing, to support your opinion. As an existing shareholder would you be satisfied with your return on investment? Comment on both the return and the dividend policy of this business. Quote the relevant financial indicators in your comments. Is this business managing expenses effectively? Quote TWO financial indicators, with figures, to support your answer. Consider the management of share capital. Give your opinion on the issue price of the new shares that on 1 August 2019. Quote relevant figures to support your answer. With reference to the shares that were repurchased from the estate of a shareholder who has died: 8.1 Did the estate of the late shareholder receive a fair price for their shares? Explain quoting relevart figures. 8.2 Explain the impact of buying back shares to the company and the remaining shareholders. Give TWO points. At the annual general meeting (AGM) one shareholder was not pleased about R200 000 spend on a local clean the environment campaign. She was of the opinion that maximizing profits should be the main focus of the business. What would you say to her? Provide TWO points. A senior director of the firm was disappointed that the new shares were sold without giving the directors an option to purchase shares before they were advertised to the public. Is he justified to feel this way? Explain by providing TWO valid points to substantiate your 6 (5) 7 (6) 8. 9 (4) 10 (5) answer Part A Doggo Ltd (74 Marks) 1. (2) 2. (10) 3 (3) (3) (3) 4. (8) 5. (5) Calculate the following amounts labelled (A) to (C) for the Cash Flow Statement. Show calculations so part marks can be awarded. (A) Income tax paid (B) Dividends paid (C) Funds used to repurchase shares Complete the note to the Balance Sheet for Ordinary Share Capital on 30 June 2020. Calculate the following financial indicators for the year ended 30 June 2020 to complete the table in information below. Round off all answers to one decimal point. 3.1 % Net profit after tax on turnover 32 % Return on average shareholders' equity 3.3 Debt/equity ratio 3.4 Net asset value (NAV) per share Shareholders expressed concerned about the large payments made towards the loan Explain why you think that this was either a good or bad decision of the directors. Quote TWO financial indicators, relating to risk and gearing, to support your opinion. As an existing shareholder would you be satisfied with your return on investment? Comment on both the return and the dividend policy of this business. Quote the relevant financial indicators in your comments. Is this business managing expenses effectively? Quote TWO financial indicators, with figures, to support your answer. Consider the management of share capital. Give your opinion on the issue price of the new shares that on 1 August 2019. Quote relevant figures to support your answer. With reference to the shares that were repurchased from the estate of a shareholder who has died: 8.1 Did the estate of the late shareholder receive a fair price for their shares? Explain quoting relevart figures. 8.2 Explain the impact of buying back shares to the company and the remaining shareholders. Give TWO points. At the annual general meeting (AGM) one shareholder was not pleased about R200 000 spend on a local clean the environment campaign. She was of the opinion that maximizing profits should be the main focus of the business. What would you say to her? Provide TWO points. A senior director of the firm was disappointed that the new shares were sold without giving the directors an option to purchase shares before they were advertised to the public. Is he justified to feel this way? Explain by providing TWO valid points to substantiate your 6 (5) 7 (6) 8. 9 (4) 10

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