Required: Prepare the consolidated statement of financial position of Pixie and its subsidiary as at
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- Required: Prepare the consolidated statement of financial position of Pixie and its subsidiary as at 31 December 20X9. (15 marks)
- Statements of profit or loss for the year ended 30 June 20X4 20X5
- Total assets 732,110 1,038,445 Equity and reserves
- Non-current liabilities
- Total equity and liabilities 732,110 1,038,445
- Calculate the ratios for and comment upon the profitability, liquidity/efficiency and financial position of Neville for 20X4 and 20X5.
- Non-current assets
- Which one of the following would help a company with high gearing to reduce its gearing ratio
- Which of the following events is most likely to have caused the increase
- (2 marks)
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1. On 1 October 20X9, Pixie acquired 37,500 ordinary shares in Dixie. At the date of acquisition, the retained earnings of Dixie amounted to $30,000. The acquisition of shares was financed by the immediate payment of $10,000 cash together with the issue by Pixie of one share for each Dixie share acquired. At 1 October 20X9, the fair value of a Pixie share was $2. At 31 December 20X9, only the payment of cash had been accounted for. At the date of acquisition, the fair value of the non-controlling interest in Dixie was $20,000. The statements of financial position of the two companies at 31 December 20X9 were as follows:
$ $ Non-current assets 210,000 110,600 Current assets 113,100 43,400
Investment in Dixie 10,000
333,100 154,000 Ordinary share capital @ $1 100,000
50,000 Retained earnings 157,000 38,000
Sundry payables 76,100
66,000
333,100 154,000 Required: Prepare the consolidated statement of financial position of Pixie and its subsidiary as at 31 December 20X9. (15 marks) 2. Peter Jackson is a sole trader who has recently prepared his accounts for the year ended 31 May 20X2. Peter also prepared some ratios and statistics in order to analyse those accounts. Unfortunately Peter has now mislaid the accounts and all that is remaining is the schedule of ratios.
Gross profit mark-up on cost 50%
Net profit/capital employed 30% Net profit margin 10% of revenue Opening inventory at selling price 73 days, based on revenue Closing inventory at selling price 109.5 days, based on revenue Current assets: current liabilities 2.9:1 Receivables payment period 45 days Payables payment period 60 days Peter can remember that his revenue for the year totalled $300,000. Required: Prepare Peter's statement of profit or loss for the year ended 31 May 20X2 and his statement of financial position at that date in as much detail as is possible from the above information. (15 marks) 3. Neville is a company that manufactures and retails office products. Their summarised financial statements for the years ended 30 June 20X4 and 20X5 are given below: Statements of profit or loss for the year ended 30 June
20X5
$000 $000 Revenue
1,159,850 1,391,820 Cost of sales (753,450) (1,050,825) Gross profit 406,400
340,995 Operating expenses (170,950) (161,450) Profit from operations 235,450
179,545 Finance costs (14,000) (10,000) Profits before tax 221,450
169,545 Tax
(66,300) (50,800) Net profit 155,150
118,745 Statements of Financial Position as at 30 June
20X4
$000
$000 $000
$000 Non-current assets Current Assets
341,400 509,590
Inventory 88,760
109,400
Receivables 206,550
419,455 Bank
95,400
—
390,710
528,855 Total assets 732,110 1,038,445 Equity and reserves Share capital 100,000 100,000 Share premium 20,000 20,000 Revaluation reserve - 50,000 Retained earnings 287,420 376,165 407,420 546,165 Non-current liabilities Loans 83,100 61,600
Payables 179,590 345,480 Overdraft - 30,200 Tax 62,000 55,000 241,590 430,680
The directors concluded that their revenue for the year ended 30 June 20X4 fell below budget and introduced measures in the year end 30 June 20X5 to improve the situation. These included: cutting prices extending credit facilities to customers leasing additional machinery in order to be able to manufacture more products. The directors’ are now reviewing the results for the year ended 30 June 20X5. Calculate the ratios for and comment upon the profitability, liquidity/efficiency and financial position of Neville for 20X4 and 20X5. 4. Below are the summarised financial statements of Joe Ltd: Statement of comprehensive income for the year ended 31 December 2011 2010 $m $m Sales 250 150 Cost of sales (190) (100) Gross profit 60 50 Administrative expenses (30) (25) Profit from operations 30 25 Finance costs (15) (5) Profit before tax 15 20 Income tax expense (6) (5) Profit for the year 9 15
Statement of financial position as at 31 December 2011 2010 $m $m $m $m Non-current assets Property, plant and equipment 250 190 Current assets Inventory 180 100 Receivables 140 80 Bank 10 50 330 230 Total assets 580 420 Equity and liabilities
Equity shares $1 each 200 200 Retained earnings 137 131 337 331 Non-current liabilities Loan notes 100 50 Current liabilities Payables 143 39 Total equity and liabilities 580 420
The following information is relevant: 1. Joe Ltd declared and paid a dividend of $5m in 2010 and $2m in 2011. 2. Depreciation for 2011 was $25m and $15m for 2010. 3. All sales were made on credit in both years.
Calculate the following ratios for 2011 and 2010: a. Profitability; b. Liquidity; c. Efficiency; d. Position. 5. The following extracts are from Bailey’s financial statements: 2011 2010 $000 $000 Sales 2,510 2,440 Cost of sales (2,354) (2,290) Gross profit 156 150
2011 2010 $000 $000 $000 $000 Current assets Inventory 94 92 Receivables 24 26 Bank 92 24 210 142 Current liabilities Payables 594 546 Bank overdraft 40 72 634 618 Required: Calculate the following ratios for 2010 and 2011: 1. Current ratio; 2. Quick ratio; 3. Receivables days; 4. Inventory days; 5. Payables days.
6. Which one of the following would help a company with high gearing to reduce its gearing ratio? A Making a rights issue of equity shares B Issuing further long-term loan notes C Making a bonus issue of shares D Paying dividends on its equity shares (2 marks)
7. A company's gross profit as a percentage of sales increased from 24% in the year ended 31 December 20X1 to 27% in the year ended 31 December 20X2. Which of the following events is most likely to have caused the increase? B A purchase in December 20X1 mistakenly being recorded as happening in January 20X2 C Overstatement of the closing inventory at 31 December 20X1 D Understatement of the closing inventory at 31 December 20X1 (2 marks)
employed? A Selling inventory at a profit B Writing off a bad debt C Paying a payable in cash D Increasing the bank overdraft to purchase a non-current asset (2 marks) Download 160.31 Kb. Do'stlaringiz bilan baham: 
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