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Would you kindly assist with a detailed analysis of the above accounting Question SECTION A [100 MARKS] Answer ALL the questions in this section. Study
Would you kindly assist with a detailed analysis of the above accounting Question
SECTION A [100 MARKS] Answer ALL the questions in this section. Study the statement of cash flows of Mantis Limited for the year ended 31 December 2021 and answer the following questions: 1.1Calculate the following for the year ended 31 December 2021: 1.1.1 Depreciation (2 marks) 1.1.2 Dividends paid (2 marks) 1.2 Of what significance is this statement of cash flows to the shareholders of Mantis (1 marks) Limited? 1.3 Comment on the following: 1.3.1Cash flows from operating activities (R181 800) (4 marks) 1.3.2lncrease in inventory (R808 000) (4 marks) 1.3.3Increase in receivables (R606 000) (4 marks) 1.3.4 Interest paid (R80 800) (4 marks) 1.3.5Cash flows from investing activities (R2 343 200) (4 marks) INFORMATION \begin{tabular}{|l|c|} \hline MANTIS LIMITED & R \\ \hline STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 \\ \hline Cash flows from operating activities & (181800) \\ \hline Operating profit & 979700 \\ \hline Depreciation & ? \\ \hline Profit before working capital changes & ? \\ \hline Working capital changes & (808000) \\ \hline Increase in inventory & (808000) \\ \hline \end{tabular} Answer the ronoviry questions irom tre minmation provideu. 2.1 Use the information provided below to calculate the ratios for 2021 (expressed to two decimal places) that would reflect each of the following: 2.1.1The time taken by the company to settle its debts with trade suppliers. (3 2.1.2The amount of debt that the company uses to finance its assets. marks) (3) marks) 2.1.3 The operational effectiveness of the company before considering interest income, marks) 2.1.4The percentage of the profit that has been put back into the company. (3 2.1.5 What investors are willing to pay for the shares of the company with due consideration 3 given to the profit generated by each share in the company. marks) 2.2 Comment on the FIVE (5) ratios of Oslo Limited as compared to the industry average (10 provided in the additional information. INFORMATION The information given below was extracted from the books of Oslo Limited: STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 3. ADDITIONAL INFORMATION I Dividends for the year ended 31 December 2021 amounted to R39 027. There were 11500 shares in issue. 'The market price per share was R20.50 on 31 December 2021. Credit terms to debtors are 30 days. IRatios of Oslo Limited for 2021 as compared to the industry average are as follows: Answer the questions from the information provided. 3.1 Study the information given below and answer the following questions independently. As far as possible, use the expanded contribution margin model to present your answers. 3.1.1Calculate the break-even quantity. (5 3.1.2CalculatethesalesvolumerequiredtoachieveanoperatingprofitofR2484000.mark)(4marks 3.1.3 Suppose the management team of Timera Enterprises is considering a decrease of (5 R18 per unit in the selling price of the product, with the expectation that this would marks) increase the sales volume by 12%. Is this a good idea? Motivate your answer with the relevant calculations. 3.1.4 Determine the selling price per unit (expressed to the nearest cent) that will enable Timera (5 Enterprises to break even. INFORMATION 3. The expected operating results of Sebcom Limited for two months are summarised as followsStep by Step Solution
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