There was a small fire in one of the offices at DBN Traders Ltd. and some of the documentation was destroyed. Fortunately the bookkeeper finished the analysis and interpretation to present at a financial meeting, but the information regarding the Statement of Comprehensive Income and the Statement of Financial Position was destroyed. You are provided with incomplete financial statements.

 

INSTRUCTION:

1         Use the information provided to complete the following on the answer sheet:

1.1    Statement of Comprehensive Income for the year ended 28 February 2021. (15)

1.2    Statement of Financial Position on 28 February 2021. (13)

 

INFORMATION:

1. Some amounts already appear on the financial statements.
2. 
   
3. Other additional information:
   1. 
      
   2. The mark up percentage is 75% on cost price.
   3. 
      
   4. Income tax calculated for the year is R48 780. That represent 30% of the profit before tax.
   5. 
      
   6. Loans have not changed over the past two years – interest of 8% per annum is paid.
   7. 
      
   8. The debt equity ratio is 0,4:1.
   9. 
      
   10. Trading stock is R63 000 according to stock taking.
   11. 
       
   12. Acid test ratio is 2,6:1.
   13. 
       
   14. Current ratio is 4,1:1.
   15. 
       
   16. The net asset value per share is 500 cents per share.
   17. 
       
   18. The return on shareholders’ equity is 21%.
   19. 
       
   20. The total shareholders equity for the previous year (2020) amounted to R680 000.