REQUIRED Calculate the following from the information provided below: 1.2.1 Value of closing inventory using the first-in-first-out (FIFO) method ( 3 marks) 1.2.2 Value of issues to production using the first-in-first-out (FIFO) method ( 2 marks) 1.2.3 Value of closing inventory using the weighted average cost method (4 marks) INFORMATION The following transactions of Gem Manufacturers took place during August 2022 in respect of a component used in production: QUESTOW? (20 Narks) REQUIRED Prepare he Pro Forma Sasement of Finatcial Posicon as at 31 December an23 from the Salemtent of Financial Posibon and adshorul inlomason provided below. INFQRQATION The francid position of Gats Limted as at 31 Deomber 2022 is seleched the folowing statement: Asditional informato The following musi be tacen iels sctount for 2003: - Sales are icrecast at R60 000000 , whth a profil nagin of 10% and a goss maxpis of 30%. Faty percert (50n) of the sales a expecied to be for canh and the balanot is on erest - The sebis collecion period is expectus io be 35.5 days - All purchases of imentones ses expected io be on cedil and are estimated bo ata R48000000. The - Equgment with a cos price of RB 000000 is ergected bo be purchased on 01 duy 20e3. Total depreciation is expecied to be Foge ogo for the year. - The matirity dates of the fred deponits are as folows Ro0 00001 14a 2020 R120 too 31 May 2005 - The loan talance is expected to be reduced by R6o 000. - The drecters ane expecied to recommend a fral dividend of R4 000 000 papable during 2024. - A bank balance of 1% of saes is desired. - Ordiray shae capial will remain unctanged. - The amount of extemal nen-curnest funding required must be calculaled (ealanaing fourt) REQUIRED would sefect each of the follaring 3.1.1 The ancurt of Luds mplobie rebhet to mies to pay the eongany s excenses other {2 maks fhan its ocst of sales (erpresped as a percer tage) 3.12 The concary's net hcone as a pertertage al the cortary/s sef salet. (2ark) 3.1. The abity of the company to genente pocits hom its stasholden mestrents in the armpany. (2 ratak 3.1.4 A moasert of the dudend popoue per ahave of the conperyt pedrary ahawe. (2mara) 315 The capacly of the compeny to pay of es cunent commbrents using jut in nost louid assets (2masa\} 3.1.6 The degret io which the conqany's assets are Inanced by sete R2 mast: 3.1. A messere of how essily the compury an puy the inbyit on th oultinding deet. (2 rates) 32 Cammart an the foleaine fales: \$ransi) INFORMATION Extrads of the financial atabenerts of Turbo Liniled for 2022 are guen below TUREO LNITED STATEMENT OF COMPREYENSEE NCOUE FOR THE YEAR ENDED II DECENGER 2122 STATENENT OF FNANEIAL POSITCN AS AT J1 DECEMECR atA. Nete: 3. Totar dividends for the jear anded 31 Deanther 2722 anountht it Recs oce 4. Credi temnt fo dettas ave 30 dayt. Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period of Project A (expressed in years, months and days). ( 3 marks) 5.2 Calculate the Accounting Rate of Retum on average investment of Project A (expressed to two decimal places). (4 marks) 5.3 Calculate the Benefit Cost Ratio of both projects (expressed to two decimal places). (7 marks) 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? (1 mark) 5.5 Calculate the Internal Rate of Retum of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. (5 marks) INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. \begin{tabular}{|l|c|c|} \hline & Project A & Project B \\ \hline Initial cost & R900 000 & R900 000 \\ \hline Expected useful life & 5 years & 5 years \\ \hline Expected scrap value & R100 000 & 0 \\ \hline Depreciation per year & R160 000 & R180 000 \\ \hline Expected net profit: & R & R \\ \hline End of year 1 & 100000 & 90000 \\ \hline 2 & 140000 & 90000 \\ \hline 3 & 150000 & 90000 \\ \hline 4 & 120000 & 90000 \\ \hline 5 & 50000 & 90000 \\ \hline \end{tabular} The company estimates that its cost of capital is 12%. Ignore taxes. REQUIRED Calculate the following from the information provided below: 1.2.1 Value of closing inventory using the first-in-first-out (FIFO) method ( 3 marks) 1.2.2 Value of issues to production using the first-in-first-out (FIFO) method ( 2 marks) 1.2.3 Value of closing inventory using the weighted average cost method (4 marks) INFORMATION The following transactions of Gem Manufacturers took place during August 2022 in respect of a component used in production: QUESTOW? (20 Narks) REQUIRED Prepare he Pro Forma Sasement of Finatcial Posicon as at 31 December an23 from the Salemtent of Financial Posibon and adshorul inlomason provided below. INFQRQATION The francid position of Gats Limted as at 31 Deomber 2022 is seleched the folowing statement: Asditional informato The following musi be tacen iels sctount for 2003: - Sales are icrecast at R60 000000 , whth a profil nagin of 10% and a goss maxpis of 30%. Faty percert (50n) of the sales a expecied to be for canh and the balanot is on erest - The sebis collecion period is expectus io be 35.5 days - All purchases of imentones ses expected io be on cedil and are estimated bo ata R48000000. The - Equgment with a cos price of RB 000000 is ergected bo be purchased on 01 duy 20e3. Total depreciation is expecied to be Foge ogo for the year. - The matirity dates of the fred deponits are as folows Ro0 00001 14a 2020 R120 too 31 May 2005 - The loan talance is expected to be reduced by R6o 000. - The drecters ane expecied to recommend a fral dividend of R4 000 000 papable during 2024. - A bank balance of 1% of saes is desired. - Ordiray shae capial will remain unctanged. - The amount of extemal nen-curnest funding required must be calculaled (ealanaing fourt) REQUIRED would sefect each of the follaring 3.1.1 The ancurt of Luds mplobie rebhet to mies to pay the eongany s excenses other {2 maks fhan its ocst of sales (erpresped as a percer tage) 3.12 The concary's net hcone as a pertertage al the cortary/s sef salet. (2ark) 3.1. The abity of the company to genente pocits hom its stasholden mestrents in the armpany. (2 ratak 3.1.4 A moasert of the dudend popoue per ahave of the conperyt pedrary ahawe. (2mara) 315 The capacly of the compeny to pay of es cunent commbrents using jut in nost louid assets (2masa\} 3.1.6 The degret io which the conqany's assets are Inanced by sete R2 mast: 3.1. A messere of how essily the compury an puy the inbyit on th oultinding deet. (2 rates) 32 Cammart an the foleaine fales: \$ransi) INFORMATION Extrads of the financial atabenerts of Turbo Liniled for 2022 are guen below TUREO LNITED STATEMENT OF COMPREYENSEE NCOUE FOR THE YEAR ENDED II DECENGER 2122 STATENENT OF FNANEIAL POSITCN AS AT J1 DECEMECR atA. Nete: 3. Totar dividends for the jear anded 31 Deanther 2722 anountht it Recs oce 4. Credi temnt fo dettas ave 30 dayt. Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the Payback Period of Project A (expressed in years, months and days). ( 3 marks) 5.2 Calculate the Accounting Rate of Retum on average investment of Project A (expressed to two decimal places). (4 marks) 5.3 Calculate the Benefit Cost Ratio of both projects (expressed to two decimal places). (7 marks) 5.4 Refer to yours answers in question 5.3. Which project should be chosen? Why? (1 mark) 5.5 Calculate the Internal Rate of Retum of Project B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. (5 marks) INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. \begin{tabular}{|l|c|c|} \hline & Project A & Project B \\ \hline Initial cost & R900 000 & R900 000 \\ \hline Expected useful life & 5 years & 5 years \\ \hline Expected scrap value & R100 000 & 0 \\ \hline Depreciation per year & R160 000 & R180 000 \\ \hline Expected net profit: & R & R \\ \hline End of year 1 & 100000 & 90000 \\ \hline 2 & 140000 & 90000 \\ \hline 3 & 150000 & 90000 \\ \hline 4 & 120000 & 90000 \\ \hline 5 & 50000 & 90000 \\ \hline \end{tabular} The company estimates that its cost of capital is 12%. Ignore taxes