Question 2The following information relates to A Ltd and B Ltd Two companies whichoperate in the same industry and listed on the stock markets. All figures are inGhana CedisSummarized Profit and LossAccountA. Ltd.80,000B LtdOperating profit80,000Interest paid10,00040,000Profit after interest70,000Dividend paid20,00040,00025,000Retained Profit15.00050.000Summarized Balance SheetA Ltd.BLtdTotal Assets less Current liabilities600,000600,000Financed by:Ghc 1.00 Ordinary shares100,000100,000Reserves100,000400,00010% Unsecured Loan stock400.000100.000600.000600.000 The market price of A Ltd. Shares is Ghc 3.50 and that of B Ltd is Ghc 4.90. The10% unsecured loan stock for both companies is currently quoted at par.Required:For each company calculate the following variables and using them company theperformance of the two companies1. ЕPS2. P/E Ratio3. TIE4. Dividend yield5. Dividend cover6. Net Asset per share

Earning Per Share- Earning Per Share is the ratio of a company's earnings for its equity…

The following information relates to A Ltd and B Ltd. Two companies which operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis Summarized Profit and Loss Account A. Ltd. B Ltd Operating profit 80,000 Interest paid 10,000 80,000 40,000 40,000 Profit after interest 70,000 Dividend paid 25,000 20,000 Retained Profit 15.000 50.000 Summarized Balance Sheet A Ltd. Ltd Total Assets less Current liabilities 600.000 600.000

The following information relates to A Ltd and B Ltd. Two companies which operate in the same industry and listed on the stock markets. All figures are in Ghana Cedis Summarized Profit and Loss Account A. Ltd. B Ltd Operating profit 80,000 Interest paid 10,000 80,000 40,000 40,000 Profit after interest 70,000 Dividend paid 25,000 20,000 Retained Profit 15.000 50.000 Summarized Balance Sheet A Ltd. Ltd Total Assets less Current liabilities 600.000 600.000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 5RP

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Question 4. (a) You are required to calculate and state the missing figures represented by alphabets ABC Ltd XYZ Ltd Ghs '000 Ghs '000 7,300 1,392 A B с D E F G H I Turnover Cost of sales Stocks Bank Trade creditors Accruals Gross profit Gross profit Margin% Distribution costs Admin expenses Debtors Net current assets Operating profit Interest Net Profit Net Profit Margin % Plant and machinery Ordinary shares of Ghs1 Retained profit 10% debenture Current assets Current liabilities Equity 8,030 4,818 J 1,800 40 100 1,606 600 1,006 K L 200 4,000 900 3,120 O 2,000 1,100 P M N 238 370 120 42% 1,320 480 800 1,266 200 3,960 900 2,000 2,430 3,500
QUESTION ONE The following financial information relates to Sporty Limited. Statement of Financial Position as at 31 December 2018 and 2019 Ordinary share capital Retained earnings Property, plant and equipment Investments Debentures 12.5% Inventory Trade debtors Prepaid expenses Trade creditors Bank overdraft SARS (income tax) Shareholders for dividends Profit before interest and tax Depreciation on equipment Dividends received on investments Interest on dividends Income tax Page 2 of 6 2019 R 400 000 55 000 230 000 165 000 20 000 124 000 37 000 Statement of comprehensive income for the year 31 December 2019 Note no. 1 for the year ended 31 December 2018 and 2019 Property, plant and equipment Land and building at cost Equipment at carrying value 25 000 21 000 5 000 30 000 Statement of changes in equity for the year ended 31 December 2019 Dividends on ordinary shares 2019 (R) 200 000 30 000 230 000 R R 295 000 5 000 195 000 110 000 2018 60 000 120 000 28 500 1 500 42 500 25 000 R 60…
Total debt 1 000 000 5 000 000 Annual interest 100 000 500 000 Total sales 25 000 000 25 000 000 EBIT 6 250 000 6 250 000 Earnings available for common stockholders 3 690 000 3 450 000 Calculate the following debt and coverage ratios for the two companies Discuss their financial risk and ability to cover the costs in relation to each other Debt ratio Times interest earned ratio Calculate the following profitability ratios for the two companies Discuss their profitability relative to one anoth
← → C #becausesneaker.... HW CH 17 v2.cengagenow.com/ilrn/take... Custom Order Appendix: Income statement and earnings per share for discontinued operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Apex Inc. Partial Income Statement For the Year Ended December 31 ☆ Check My Work * I Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. $670,000 $120,000* 60,000 40% b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Enter answers in dollars and cents, rounding to the nearest whole cent. Du + : ?
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M,Band/Aweretthree partnerssharing profits i int the ratio 2::2::11Their|Balance Sheetas at 31.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities $ Assets $ General ReservE M's Capital B's Capital FAs Capital Creditors 28,000 30,000 20,000 10,000 25,000 17,500 4,C00 TZ1500 28,500 45,500 15,000 30,000 Casih Debtors Stock Land & Building Motor Vehicle Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: (fa) Batanceiin Capital A/c ((b) Shareof goodwill valued on the basis of thrice the averoge profits far ithe pastifourcompieted years. ((0) Shareinprofits upto the dote of death on the basis of average profits forthe pastifour completet yeurs. ((d) ifntereston capital@ 18% p.a. Profits forithe yearsending on/March 31“ of 2009, 2010, 2011 and2012 respectively.were $50,000, $E8,00, $40,000, $52,0ODirespectively. Theifirmihaitaken amatonvéhičteibutítwas mot recordetdi inthelhooksitillttate. The market…
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