The Grade 12 Accounting Test on Cash Flow and Interpretation covers principles such as ethical behavior, transparency, and accountability . It includes preparing the Ordinary Share Capital note in the Balance Sheet, calculating amounts for the Cash Flow Statement, and evaluating financial indicators like Debt-equity ratio, Return on total capital employed (ROTCE), and Net asset value per share (NAV).
To succeed in this test, students should regularly practice calculating financial indicators and interpreting cash flow data, review comprehensive resources, and seek clarification when needed . Mastering these concepts will not only benefit students academically but also lay a strong foundation for making informed financial decisions in the future. The test also emphasizes the significance of reconciling cash flow statements with balance sheets and understanding the methodology for preparing a cash flow statement, including the direct and indirect methods
Questions
The given information relates to Tyali Ltd. The company has an authorised share capital of 900 000 ordinary shares. The financial year ended on 29 February 2020.
- Prepare the Cash Flow Statement for the year ended 29 February 2020. (Where applicable show calculations / figures in brackets to earn part marks).
- Calculate the Debt-Equity ratio for 2020.
- The directors decided to increase the loan during the current financial year. Explain TWO financial indicators to indicate why this was a good decision. Quote figures.
- The board of directors is of the opinion that the shareholders should be happy with their percentage return and the market price of their shares. Quote and explain TWO financial indicators with figures to support their opinion.