Dlamini & Sons is a manufacturing company in the Limpopo province. Their factory manufactures 750 ml glass bottles and is one of Coca Cola South Africa's regional suppliers. Their statement of financial position is provided hereunder. 2018 2019 Sales price per unit R9 R10 Variable cost per unit R3 R5 Fixed cost (FC) per annum R785 000 R890 500 Fixed cost per unit R3 R4
Dlamini & Sons is a manufacturing company in the Limpopo province. Their factory manufactures 750 ml glass bottles and is one of Coca Cola South Africa's regional suppliers. Their statement of financial position is provided hereunder. 2018 2019 Sales price per unit R9 R10 Variable cost per unit R3 R5 Fixed cost (FC) per annum R785 000 R890 500 Fixed cost per unit R3 R4
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Explain whether the gross profit margin ratio results are favourable.
Transcribed Image Text:Dlamini & Sons is a manufacturing company in the Limpopo province. Their factory manufactures
750 ml glass bottles and is one of Coca Cola South Africa's regional suppliers. Their statement of
financial position is provided hereunder.
2018
2019
Sales price per unit
R9
R10
Variable cost per unit
R3
R5
Fixed cost (FC) per annum
R785 000
R890 500
Fixed cost per unit
R3
R4
State of financial position for Dlamini & Sons for the year ended 28 February 2019.
ASSETS
R
EQUITY AND LIABILITIES
Non-current assests
1370 000,00 Shareholder's capital
Authorised and issued - ordinary share
(150000 @ R2 each)
300 000,00
Land and buidlings (cost price)
Plant and equipment (cost
price)
350 000,00
1800 000,00
Distributive reserves
Capital reserves
Undistributed profits
450 000,00
165 000,00
Less
615 000,00
Accumulated depreciation
780 000,00 1020 000,00
Transcribed Image Text:State of financial position for Dlamini & Sons for the year ended 28 February 2019.
ASSETS
EQUITY AND LIABILITIES
Non-current assests
1370 000,00 Shareholder's capital
Authorised and issued-ordinary share
Land and buidlings (cost price)
Plant and equipment (cost
price
350 000,00
(150000@ R2 each)
300 000,00
1 800 000,00
Distributive reserves
Less
Capital reserves
450 000,00
Accumulated depreciation
780 000,00 1020 000,00
Undistributed profits
Owner's equity
Preference share capital
165 000,00
615 000,00
915 000,00
Other assests
40 000,00
Investments
Shareholders interest
955 000,00
Long term assets
1370000,00 Non-current liabilities
Debentures
100 000,00
Current assets
336 S00,00 Total lang term labilities
055000,00
Cash
112 000,00
Marketable securities
36 000,00
Current liabilities
651500,00
Debtors (net)
105 000,00
Trade credit
515 000,00
Inventory
67 000,00
Bank overdraft
86 000,00
Pre-paid expenses
16500 00
Arrearexpense,
50 500,00
TOTAL ASSETS
1706500,00 TOTAL EQUITY AND LIABILITIES
1706 500,00
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