Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Task
The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.
000)
Profit and Loss accounts for the year ended 31 December
R Ltd
2010
Sales
4,800
Cost of sales
3,000
Gross Profit
1,800
Less: Expenses
Wages
500
Selling and administration
80
Advertising
220
Other overheads
275
1,075
Profit before interest and tax
725
Less: debenture interest
25
profit before tax
700
Taxation
100
Profit after tax
600
Dividends-preference shares
-12
- ordinary shares
-108
480
Balance Sheet as at 31 December
RLtd
(000)
Fixed Assets
300
450
Current Assets
Stock
1,230
trade debtors
1,000
Bank
250
2,280
1,700
Current Liabilities
trade creditors
350
405
Property tax payable
95
Net current assets
1,830
1,200
Total assets less current liabilities
2,130
1,650
Financed by:
1 ordinary shares
8% preference share
150
reserves
1,430
950
1880
1400
Long term liabilities
10% Debenture
Note:
There was no new issue of shares throughout the year of 2009 and 2010
The market prices per share on 31 December for 2010 and 2009 were $19.6 and $19 respectively.
Required
Analyse the financial statements using relevant techniques, such as ratios, to assess the financial viability of R Ltd
Carry out a performance audit for R on the 2009 and 2010 financial results with respective reference to the internal and external factors, for external factors please specifically consider the impact of the industry and market that R is in.
Use appropriate calculations to improve the quality of the financial information provided and calculated in (a) above.
Based on (a) , (b) and (c) above make recommendation on the strategic portfolio of R. (Please use BCG model for your recommendation. Assuming that the home cordless phone sector in Hong Kong is very keenly competitive and innovative. New product is launched in the market very quickly. R has 15% of the market share and finds it is quite difficult to hold or gain market share.)
DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding. a. If DIY sets the subscription price to be $80
What is the one-year Treasury security rate of 1R1? For 1R3=11%, E(2r1)= 4% and E(3r1)=5%
Description of the deal, analysis of abnormal returns & premium (a) Describe the transaction structure, mode of payment, and financing. (b) Give your comment/assessment of
ROA - Return on Assets The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA th
Dividend Ratios 1. Dividend per shares (DPS) = Earnings to ordinary shareholders/ Number of ordinary shares Specify cash returns received for all share holders. 2. Di
what will happen to the loss on account of premium redemption of debenture through sinking fund? Where do i close this account to?
Solutions - Shareholders and Management Conflict Conflicts between management and shareholders may be resolved as follows like: 1. Pegging or attaching managerial compens
what are control
Conditions under which Loans Are Ideal a) Whenever the company's gearing level is low as the level of outstanding loans is low. b) The company's future cash flows as inflows
Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd