The following trial balance was extracted (taken) from the books of Brussels Ltd, a furniture store, on 31 December 2022. The authorised share capital is 350,000 ordinary shares at R1 each. Trial balance of Brussels Ltd as at 31 December 2022 Dr (R) Turnover (cash sales) Cash purchases Import duty Opening stock 1/1/2022 Loan interest Wages Advertising Reserves Motor vehicles Equipment Cash Bank overdraft Debtors and creditors Dividends paid 14% 40 year loan Issued share capital 250 000 R1 ordinary shares 160 000 6 000 14 000 7.000 16 800 12 000 END 200 000 230 000 2 000 6 000 20 000 673 800 Cr (R) 320 000 18 000 2 800 3.000 50 000 280 000 673 800 (a) You are required to prepare (i) an income statement of Brussels Ltd for the year ending 31 December 2022 and (ii) a statement of financial position as at that date.
Q: grandmother gave you money to start saving have $7,500 begin investing in a GIC. Consider all…
A: When the compounding is annual, the annual interest rate quoted is the effective rate. But when the…
Q: A 4.30 percent coupon bond with 14 years left to maturity is offered for sale at $943.22. What yield…
A: Yield to maturity is the term used to describe the internal rate of return that an investor receives…
Q: If 1) the expected return for Belmont Bagels stock is 8.31 percent; 2) the dividend is expected to…
A: The current stock price is the discounted value of future cash flows from the stock. This includes…
Q: What is the price-weighted index of the following three stocks?
A: A price-weighted index is a type of stock market index where each stock is weighted based on its…
Q: You are considering two investment options. In option A, you have to invest RM6000 now and RM1000…
A: Pay back period refers to the period or no of years by which initial investment is recovered by the…
Q: After researching the competitors of EJH Enterprises, you determine that most comparable firms have…
A: S.NoParticulars…
Q: In a particular year, a fund manager made the following investments in the following asset classes…
A: WeightReturnBonds40%5%Stocks60%18%WeightReturnBonds (BOND INDEX)70%3%Stocks (STOCK INDEX)30%12%
Q: For the given cash flows, suppose the firm uses the NPV decision rule. Year 0 123 2 3 Cash Flow…
A: NPV is the net value added by a capital budgeting decision. It is the difference between discounted…
Q: The expected rate of return for the stock of Cornhusker Enterprises is 15 percent, with a standard…
A: The coefficient of variation refers to the level of risk that an investor faces for each unit of…
Q: You have just been offered a contract worth $1.03 million per year for 7 years. However, to take the…
A: The maximum capital investment that can be made for a project is the present value of all returns…
Q: i. Some companies choose to pay dividends. Clearly list and explain two reasons for paying…
A: Two reasons for paying dividends are: 1 - Rewarding shareholders: Paying dividends allows companies…
Q: At expiry, a holder of a call option with an exercise price of $45 (purchased for a premium of…
A: The call option is the option in which the buyer of the option has the right to buy the underlying…
Q: The accounting staff of Lambert Company has assembled the following information for the year ended…
A: Statement of cash flows is a financial statement that captures only cash dealt items in terms of…
Q: What are the trade-offs facing an investor who is considering buying a put option on an existing…
A: A put option gives the right but not the obligation to sell at the strike price while a call option…
Q: Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you…
A: The risk-adjusted return refers to the return that the investment provides after the risk associated…
Q: A borrower and a lender agree on a $255,000 loan at 8 percent interest. An amortization schedule of…
A: Mortgage amortization is a method of paying off a home loan through regular payments that include…
Q: The stock market data given by the following table. Telmex Mexico World Correlation Coefficients…
A: Beta represents a measure of systematic risk or volatility of a security relative to the market as a…
Q: eBook The Blinkelman Corporation has just announced that it plans to introduce a new solar panel…
A: Value of the stock is determined by present value of all future cash flows and present vaalue of the…
Q: Use the data provided for Gotbucks Bank Inc. to answer this question. Notes to the balance sheet:…
A: Data given:Fixed-rate loans are selling at par and have five-year maturities with 12 percent…
Q: Ives Corporation, has an inventory period of 22.1 days, an accounts payable period of 34.7 days, and…
A: The cash cycle of the company refers to the time it takes for the company to convert the investment…
Q: Which of the following sets of characteristics would best describe an ARMA(3,3) process: Select one:…
A: The set of characteristics that best describes an ARMA(3,3) process is option "e) a slowly decaying…
Q: Carlsbad Corporation's sales are expected to increase from $5 million in 2021 to $6 million in 2022,…
A: Additional Funds Needed:It represents the additional funds required by the firm to effectively carry…
Q: 1.Hampton Company reports the following information for its recent calendar year. Income Statement…
A: Cash flow statement is that statement which show the cash in cash out under under three…
Q: Zion Inc. will pay a $4.25 per share dividend in year 5. The company pledges to increase its…
A: Expected dividend per share =$4.25Growth rate (g)=5%Return on investment (r)=10%Time period =5…
Q: Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: Mack Industries just paid a dividend of $3 per share (DO- $3). Analysts expect the company's…
A: In the given case, we have provided the dividend paid per share, growth rate of dividend for each…
Q: nterpreting liquidity and activity ratios The table. shows key financial data for three firms that…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: The U.S. financial system is composed of (1) policy makers, (2) a monetary system, (3) fi nancial…
A: A financial system in the economy has different participants or components who work in the financial…
Q: A 30 year old person plans to retire at age 65 with an equivalent lump sum of $1,000,000. They…
A: Here,Current Age is 30 years oldRetirement age is 65 years oldTime Period of Savings will…
Q: Describe and discuss how correspondent banks help fight Money Laundering, Terrorism Financing and/or…
A: Introduction:Correspondent banks-These refers to financial institutions that acts as an agent to…
Q: Happy Henry’s car dealer sells an imported car called the EX123. Once every three months, a shipment…
A:
Q: Enterex Corporation expects sales of $437,500 next year. Enterex’s profit margin is 4.8% and its…
A: Expected sales=$437,500Profit margin=4.8%Dividend Payout ratio=40%Required:Projected Increase in…
Q: What is a bank syndicate? How is syndication supposed to work/function? What is the difference…
A: A bank syndicate is a group of banks or financial institutions that collaboratively provide funding…
Q: In 2022 Quick Burger had capital expenditures of $3,064. a. Calculate Quick Burger's free cash flow…
A: Free cash flow represents the amount of cash produced by a firm from its normal business operations.
Q: Prepare a 2021 balance sheet for Willis Corporation based on the following information: Cash…
A: A balance sheet is a financial statement that shows the financial position of a firm at a point in…
Q: Although the Chen Company's milling machine is old, it is still in relatively good working order and…
A: NPV (Net Present Value) is referred to as the difference between the PV of the cash inflows and also…
Q: The following table shows the prices of a sample of Treasury bonds, all of which have coupon rates…
A: The primary purpose of issuing Treasury bonds is to raise funds to finance government projects and…
Q: Red Lizard Co loan payment O A rate equ A rate les: O A rate equ O A rate equ O A rate equ 20000
A: The effective annual rate refers to the interest rate that is being charged on the borrowing amount…
Q: Montedosa Corporation has 400,000 shares of common stock outstanding, a P/E ratio of 8, and P500,000…
A: Spliting of share is that under which board of the director will increase or decrease the no. share…
Q: Blue Spruce Pix currently uses a six-year-old molding machine to manufacture silver picture frames.…
A: Net Present Value: It is future cash flows over the entire period of a project that discounted…
Q: Problem 6-7 As the chief financial officer of Adirondack Designs, you have the following…
A: Times Interest Earned Ratio:This ratio represents a measure of the firm's ability to pay off its…
Q: Alana Olsen borrowed $5,000 for 90 days from First Bank. The bank discounted the note at 7 percent.…
A:
Q: 4. Suppose you are a money manager of a $10 million investment fund. The fund is invested in three…
A: Investment in T-bills = 10 - 3 - 2 - 4 = 1 millionStockInvestment (in millions)weight of…
Q: A home buyer signed a 20-year, 8% mortgage for $72,500. Payments of the mortgage should be made…
A: This can be solved using the present value of an annuity concept.Annuity is…
Q: Knoko Systems is considering a capital budgeting project with a life of five years that requires an…
A: NPV is also known as Net Present Value. It is a capital budgeting techniques which help in decision…
Q: Financial Soundness requirements different FSPs must comply with.
A: Financial Soundness refers to the ability of an Asset to generate future income using the funds in…
Q: Calculate the profitability index for the below projects and indicate your order of choices. Project…
A: Project APresent Value = $145,000Investment = $95,000Project B Present Value = $135,000Investment =…
Q: Creek Enterprises Income Statement for the Year Ended December 31, 2022 Sales revenue Less: Cost of…
A: Income Statement: It is a part of financial statement of a company in which revenue and expenses are…
Q: A store will give you a 2.25% discount on the cost of your purchase if you pay cash today.…
A: The implicit borrowing rate refers to the rate that is applied to the customers for extending credit…
Q: Booher Book Stores has a beta of 0.9. The yield on a 3-month T-bill is 4% and the yield on a 10-year…
A: As per the given information:To determine:The estimated cost of common equity using the CAPM
Step by step
Solved in 4 steps
- You have been recently appointed the junior accountant of Peachy Limited. The following trial balance has been extracted from the records of Peachy Limited as at 31 December 2020. €’000 €'000 Ordinary shares of €1 each 150,000 50,000 50,000 80,000 129,010 Share Premium 5% preference shares 7% loan notes Retained earnings Premises 290,000 87,000 40,000 Motor vehicles at cost Equipment at cost Accumulated depreciation – motor vehicles Accumulated depreciation - Equipment Inventory at 1.1.20 Payables Receivables 17,000 8,000 48,000 12,750 24,400 Bank 11,740 Revenue 327,000 Purchases 188,000 34,000 Wages Administrative expenses Selling & distribution costs 15,320 12,470 70,230 2,600 Directors Salaries Loan note interest paid 823,760 823,760 Additional Information: 1. The company uses the revaluation model for valuing its premises. The premises is included in the trial balance at its fair value as at 31 December 2019. Both motor vehicles and equipment are included in the trial balance at…The following trial balance relates to Selt.plc for the year ended 31 December 2021: Equity shares of £1 each Share Premium Retained earnings at 1 January 2021 Property at cost Depreciation on property at 1 January 2021 Plant and equipment at cost Depreciation on plant and equipment at 1 January 2021 Inventory at 1 January 2021 Trade receivables Cash and cash equivalents Trade payables 5% Loan repayable 2026 Revenue Purchases Distribution costs Administrative expenses Research and development expenditure Loan Interest paid Dividend paid Further notes: £'000 34,800 22,800 Required: A Statement of Profit or Loss for the year ended 31 December 2021. A Statement of Financial Position as at 31 December 2021 4,900 4,000 6,840 155,000 22,050 12,750 19,600 300 4,000 287,040 £'000 56,000 2,000 7,780 3,200 4,500 1,560 12,000 200,000 287,040 2) 1) Inventory was valued at £3,800,000 on 31 December 2021. (This valuation is before note (4) below is considered). Property includes land valued at…You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financialstatements for the year ended 31 December 2023. You have been provided with the followingfinancial information for the year ended 31 December 2023:RandsOrdinary shares (5 200 000)Retained earnings at 1 January 2023 (850 000)Inventory at 1 January 2023 5 400 000Land at cost 3 600 000Buildings at cost 10 800 000Buildings accumulated depreciation at 1 January 2023 (2 700 000)Plant at cost 12 000 000Plant accumulated depreciation at 1 January 2023 (4 500 000)Motor vehicles at cost 4 000 000Motor vehicles accumulated depreciation at 1 January 2023 (1 400 000)Trade payables (10 800 000)Trade receivables 7 200 000Provision for credit losses at 1 January 2023 (300 000)Purchases 24 500 000Revenue (36 000 000)Administrative expenses 2 500 000Distribution expenses 2 900 000Other expenses 600 000Bank 1 300 0004% Redeemable Preference shares at R1 each (6 000 000)8% Loan (6 000 000)23 2023© The…
- You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financialstatements for the year ended 31 December 2023. You have been provided with the followingfinancial information for the year ended 31 December 2023:RandsOrdinary shares (5 200 000)Retained earnings at 1 January 2023 (850 000)Inventory at 1 January 2023 5 400 000Land at cost 3 600 000Buildings at cost 10 800 000Buildings accumulated depreciation at 1 January 2023 (2 700 000)Plant at cost 12 000 000Plant accumulated depreciation at 1 January 2023 (4 500 000)Motor vehicles at cost 4 000 000Motor vehicles accumulated depreciation at 1 January 2023 (1 400 000)Trade payables (10 800 000)Trade receivables 7 200 000Provision for credit losses at 1 January 2023 (300 000)Purchases 24 500 000Revenue (36 000 000)Administrative expenses 2 500 000Distribution expenses 2 900 000Other expenses 600 000Bank 1 300 0004% Redeemable Preference shares at R1 each (6 000 000)8% Loan (6 000 000)23 2023© The…You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financialstatements for the year ended 31 December 2023. You have been provided with the followingfinancial information for the year ended 31 December 2023:RandsOrdinary shares (5 200 000)Retained earnings at 1 January 2023 (850 000)Inventory at 1 January 2023 5 400 000Land at cost 3 600 000Buildings at cost 10 800 000Buildings accumulated depreciation at 1 January 2023 (2 700 000)Plant at cost 12 000 000Plant accumulated depreciation at 1 January 2023 (4 500 000)Motor vehicles at cost 4 000 000Motor vehicles accumulated depreciation at 1 January 2023 (1 400 000)Trade payables (10 800 000)Trade receivables 7 200 000Provision for credit losses at 1 January 2023 (300 000)Purchases 24 500 000Revenue (36 000 000)Administrative expenses 2 500 000Distribution expenses 2 900 000Other expenses 600 000Bank 1 300 0004% Redeemable Preference shares at R1 each (6 000 000)8% Loan (6 000 000)23 2023c The…You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financialstatements for the year ended 31 December 2023. You have been provided with the followingfinancial information for the year ended 31 December 2023:RandsOrdinary shares (5 200 000)Retained earnings at 1 January 2023 (850 000)Inventory at 1 January 2023 5 400 000Land at cost 3 600 000Buildings at cost 10 800 000Buildings accumulated depreciation at 1 January 2023 (2 700 000)Plant at cost 12 000 000Plant accumulated depreciation at 1 January 2023 (4 500 000)Motor vehicles at cost 4 000 000Motor vehicles accumulated depreciation at 1 January 2023 (1 400 000)Trade payables (10 800 000)Trade receivables 7 200 000Provision for credit losses at 1 January 2023 (300 000)Purchases 24 500 000Revenue (36 000 000)Administrative expenses 2 500 000Distribution expenses 2 900 000Other expenses 600 000Bank 1 300 0004% Redeemable Preference shares at R1 each (6 000 000)8% Loan (6 000 000)Additional…
- The following trial balance was extracted from the book of Adiwarna Bhd on 31 December 2020: Item 7.2% preference shares Ordinary shares General reserve Retained profit Sales Inventory Purchases Salesman salaries Advertising Office salaries Office expenses Directors emolument Audit fees 10% Debenture Interim dividend - Preference dividend - Ordinary dividend Debenture interest Trade payables Tax paid Plant and machinery (Cost) Accumulated depreciation on plant and machinery Trade receivables Bank RM 100,000 300,000 100,000 45,000 100,000 55,000 25,000 5,000 7,200 25,200 10,000 35,000 1,540,000 90,000 102,600 2.540,000 RM 200,000 740,000 100,000 123,600 890,000 200,000 40,000 246,400 2,540,000You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financialstatements for the year ended 31 December 2023. You have been provided with the followingfinancial information for the year ended 31 December 2023:RandsOrdinary shares (5 200 000)Retained earnings at 1 January 2023 (850 000)Inventory at 1 January 2023 5 400 000Land at cost 3 600 000Buildings at cost 10 800 000Buildings accumulated depreciation at 1 January 2023 (2 700 000)Plant at cost 12 000 000Plant accumulated depreciation at 1 January 2023 (4 500 000)Motor vehicles at cost 4 000 000Motor vehicles accumulated depreciation at 1 January 2023 (1 400 000)Trade payables (10 800 000)Trade receivables 7 200 000Provision for credit losses at 1 January 2023 (300 000)Purchases 24 500 000Revenue (36 000 000)Administrative expenses 2 500 000Distribution expenses 2 900 000Other expenses 600 000Bank 1 300 0004% Redeemable Preference shares at R1 each (6 000 000)8% Loan (6 000 000)23 2023© The…The following trial balance was extracted from the accounts of Blue Ltd as at 31 December 2019. Debit £ Credit £ Bank 25,000 Retained profit as at 1 January 2019 23,080 Cash at hand 3,500 Ordinary issued share capital 30000 Insurance 2,000 Directors Remuneration 17,580 5% loan notes 2032-2032 10000 Sales return outwards 3,500 Return inwards 3,000 Interim Dividend paid 8,500 Loan Interest Paid 500 Sundry expenses 3000 Carriage Inwards 2,500 Repairs and renewals 1200 Motor vehicles 15,000 carriage outwards 750 Accumulated depreciation on motor vehicles 2,850 Office Equipment at cost 20,000 Office Equipment: accumulated depreciation 8000 Allowance for trade receivables 1,000 Purchases 50,000…
- he information below relates to questions 1 – 16. The following information pertains to Honey Limited. Extract from ledger account balances as at 30 September: 2022 2021 R R Share capital: Ordinary shares 380 500 338 300 Share capital: Preference shares 291 000 264 700 Retained earnings 66 200 48 400 Long-term loan - ABC Bank 88 000 120 000 Land and buildings at cost 623 000 401 000 Machinery and equipment at carrying amount 262 300 222 700 Inventory 83 500 73 000 Trade receivables control 92 700 83 300 Listed investments 110 000 0 Bank 25 200 46 300 Trade payables control 66 500 52 600 SARS (income tax) 63 400 48 700 Dividends payable 46 200 62 000 Dividends receivable 0 0 Accrued expenses (wages) 0 11 400 Prepaid expenses 11 200 4 200 Revenue 805 800 Cost of sales 392 400 Administrative, distribution and other expenses 160 200 Fair value gain on listed investments 8 600 Dividends income 20 800 Loss on sale of machinery…The following information is available in respect of Vegas plc for the last 2 years ended 31 December. Non-current Assets (at Net Book Value) Current Assets: Inventory Trade receivables Cash at bank Equity and Liabilities: Equity Share capital £1 Share premium Revenue reserve Vegas plc: Statement of Financial Position 31.12.2021 Non-current Liabilities: Loan Current Liabilities: Trade payables Taxation (accrual) Operating profit Taxation £000 390 462 80 88 142 £000 2,100 932 3.032 900 50 852 1,802 1,000 230 3.032 274 (156) 118 (87) 31 31.12.2020 Vegas plc: Income Statement (Extract) for the year ended 31.12.2021 £000 Dividends Retained profit for the year The following information is also available: • There were no non-current asset disposals during the year. • Depreciation for the year was £240,000. £000 210 346 50 73 137 £000 1,975 606 2.581 700 821 1,521 850 210 2.581 Prepare, in a suitable format, the Statement of Cash Flow for Vegas plc for the year ended 31.12.2021, presenting…36.4 The following balances remained in the ledger of Lungox Ltd after preparation of the income statement for the year ended 31 December 2019: £000 Inventory Accounts receivable 138 166 Issued ordinary shares of £1 each 4% preference shares of £1 each Accounts payable 80 50 141 Balance at bank 18 General reserve Retained profits at 1 January 2019 Profit for year to 31 December 2019 Non-current assets at cost less accumulated 40 221 66 547 depreciation 5% loan notes, repayable 2029 Corporation tax payable Share premium 150 35 96 During the year the preference dividend for 2018 was paid in full, along with ordinary dividends amounting to 10 pence per share. The directors also wish to transfer £15,000 to general reserve. Required: (a) An extract from the Statement of Changes in Equity for the year ended 31 December 2019, showing the movement in general reserve and retained profits. (b) A balance sheet as at 31 December 2019.