HI5002 Finance for business Question 1                                                                                                    You are a newly employed finance manager for Finance Adventure Ltd. The following data is available for the company as of 31 June 2020: Current assets of $293,950 Current liabilities $68,700 Total assets $765,600 Equity $305,890  Required:                                  The company’s Management Board required you to evaluate two alternative options of debt funding and equity funding for a new project. What is the job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer)  Calculate non-current assets, non-current liabilities and build a balance sheet for the company?  Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%?  What is the price earnings ratio (PE) of the company, given total number of outstanding ordinary shares is 57,000 and market price of each share is $22?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...
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HI5002 Finance for business

Question 1                                                                                                   

You are a newly employed finance manager for Finance Adventure Ltd. The following data is available for the company as of 31 June 2020:

Current assets of $293,950

Current liabilities $68,700

Total assets $765,600

Equity $305,890

 Required:                                 

  1. The company’s Management Board required you to evaluate two alternative options of debt funding and equity funding for a new project. What is the job are you doing to complete the task? (referring to one out of 3 important questions of corporate finance for your answer) 
  2. Calculate non-current assets, non-current liabilities and build a balance sheet for the company? 
  3. Calculate the return on assets (ROA) of the company given that return on equity (ROE) is 35%? 
  4. What is the price earnings ratio (PE) of the company, given total number of outstanding ordinary shares is 57,000 and market price of each share is $22? 
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