ABC Company Ltd provides you following information and balance sheet on 31 December: Balance Sheet Liabilities Equity shares capital @ Rs 100 6% Preference shares capital Amount Assets Amount 200,000 Fixed assets 475,000 50,000 Long term investment 50,000 8% Debentures 135,000 50,000 Other quick assets 180,000 Closing stock Current liabilities 20,000 General reserve 180,000 Preliminary expenses 10,000 P&L account last year 131,750 Account receivable 157,500 P&L account current year 55,750 847,500 847,500 Other information: Fixed assets turnover ratio was 3 times for the year. Net profit margin before interest and tax was 10% opening stock sales. Company is within 50% tax brackets, Working days during the year was 360 days. Required: (a) Current ratio; (b) Quick ratio; (c) Debt equity ratio; (d) Return on shareholders' equity.
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- The correct ledger entries needed to record the issue of £400,000 £1 shares at a premium of 60p, and paid for by cheque, in full, would be Debit Credit £ £ Share premium Share capital BankThe following is the Balance sheet of Moin lilited as on 31st march 2020. You are required to comment on the Liquidity of the Company Liabilities Amount 5,00,000 Equity Share Capital 8% preference Share Capital 10%long term loans 14%debentures Sundry creditors Bills payable Provision for taxation Proposed preference dividend Bank overdraft 3,00,000 3,25,000 1,50,000 75,000 30,000 70,000 24,000 20,000 14,94,000 Assets Goodwill Premises Machinery Trade investments Short term investment Stock Debtors Bills payable Cash Prepaid expenses Amount 1,00,000 3,00,000 4,50,000 1,00,000 44,000 1,75,000 1,75,000 1,25,000 10,000 15,000 14,94,000(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of sales
- Q39. Balance Sheet had the following amounts as at 31st March, 2019: $ Current Assets 10% Preference Share Capital Equity Share Capital 5,00,000 15,00,000 Current Liabilities Securities Premium Reserve Reserve and Surplus 1,00,000 Investments (in other companies) 4,00,000 Fixed Assets -Cots 30,00,000 Depreciation Written off Long-term from IDBI @ 9% Calculate ratios indicating the long-term and the Short-term financial position of the company. $ 12,00,000 8,00,000 2,00,000 60,00,000 14,00,000From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret: a. Current Ratio; b. Liquidity Ratio; c. Proprietary Ratio; d. Debt-Equity Ratio; e.Capital Gearing Ratio. Balance Sheet as on 31st December 2020 Liabilities Amount (Rs) Assets Amount (Rs) 5,000 Equity Shares of Rs 10 each 5,00,000.00 Land & Building 5,00,000.00 8%, 2000 Preference Shares of Rs 100 each 2,00,000.00 Plant & Machinery 6,00,000.00 9 % Debentures of Rs 100 each 4,00,000.00 Sundry Debtors 2,00,000.00 Reserves & Surplus 3,00,000.00 Stock 2,40,000.00 Sundry Creditors 1,50,000.00 Cash in hand 55,000.00 Bank Overdraft 50,000.00 Prepaid Expenses 5,000.00 TOTAL 16,00,000.00 TOTAL 16,00,000.00 don't give hand written answersReference is made to the 2022 Balance Sheet of Tran-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000,00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 50,000,000.00 Additional Information: 1. The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. iii. iv. V. Preferred shares have a book value of $100 per share. These shares are currently selling at $120 per share and pays dividends of 6% per annum on book value. The dividend growth rate is expected to be 3%, and dividend for 2823 is projected to be $5.00 per share. The…
- The following are extracts from the Statement of Financial Position dated 30/09/2023: Equity £1 share capital Retained Profit Non-Current Liabilities Debentures Bounce-back Loan 30/09/2023 2 14,605 189,874 59,727 30/09/2022 2 18,389 154,037 80,601 Total dividends of 53,714 were paid to shareholders in the year. How much in total should be shown on the Statement of Cashflows for Financing Activities for the year ended 2023? [NOTE: If negative enter number with a "-" first.]The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…Reference is made to the 2022 Balance Sheet of Tram-Ropes limited. Tram-Ropes Limited Balance Sheet 2022 Cash Acc. Receivable Marketable securities Inventories Fixed Assets Total Assets i. 1,000,000.00 ii. 12,000,000.00 3,000,000.00 7,500,000.00 26,500,000.00 50,000,000.00 Accounts Payable Notes Payable Long-term Debt Common stock Preferred Stock Total Liabilities and Equity 8,000,000.00 8,500,000.00 20,000,000.00 7,500,000.00 6,000,000.00 Additional Information: The Long-Term debt consists of 8% annual coupon bonds, with 15 years to maturity and are currently selling for 95% of par. The company's common shares which have a book value of $20 per share are currently selling at $25 per share. 50,000,000.00
- From the following Balance Sheets of Dinesh Ltd. Particulars 2019 Rs. 2020 Rs. 2021 Rs. Equity & Liabilities Equity Share Capital 500 800 900 12% preference Share Capital 400 200 300 General Reserve 120 210 280 14% Debentures 100 250 150 Creditors 80 120 140 Bills Payable 100 80 60 Outstanding Expenses 20 30 10 1,320 1,690 1,840 Assets Fixed Assets 500 700 700 Investments 300 330 420 Stock 200 100 200 Debtors 150 200 250 Bills Receivable 90 270 200 Cash 50 70 60 Preliminary Expenses 30 20 10 Total 1,320 1,690 1,840 Prepare Trend analysis statement with comments.?From the following Balance Sheets of Dinesh Ltd. Particulars 2019 Rs. 2020 Rs. 2021 Rs. Equity & Liabilities Equity Share Capital 500 800 900 12% preference Share Capital 400 200 300 General Reserve 120 210 280 14% Debentures 100 250 150 Creditors 80 120 140 Bills Payable 100 80 60 Outstanding Expenses 20 30 10 1,320 1,690 1,840 Assets Fixed Assets 500 700 700 Investments 300 330 420 Stock 200 100 200 Debtors 150 200 250 Bills Receivable 90 270 200 Cash 50 70 60 Preliminary Expenses 30 20 10 Total 1,320 1,690 1,840 Prepare Trend analysis statement withcomments.?1 Following is the Balance sheet of Jay Limited: Liabilities Equity Shares of Rs. 10 each Retained Earnings } VESHUR 6% Preference Share of Rs.10 each General Reserve Debenture Redemption Fund 5% Debentures Sundry Creditors Total Liabilities Amoun Required: Calculate value per share by using following 1. Yield Method 2. Net Assets Method t 300,000 200000 Assets Fixed Assets Allowances for Depreciation 21 13303 90,000 880,000 200,000 Current assets 5,000 Preliminary Expenses Unwritten Off Discount 25,000 60,000 Amoun t 600,000 (75,000) 340,000 10,000 5,000 Total Assets Current Assets include investments of Rs.50,000 market price of which is Rs.90,000. Debtors included in current assets are doubtful to the extent of Rs.25,000 for which no provision has been made so far. Debenture interest owes for two years and preference dividends are in arrear for two years. Earnings before tax is Rs.280,000 and Tax rate is 35%. The normal rate of dividend is 20%. 880,000