Question

a) The financial data of DAMANGO FORESST RESERVE for the year ended 2019 is set
below
Income statement for the year ending 31/12/2019
GHS GHS
Sales 120,000
COGS:
Inventory @ beginning 16,000
Purchases 76,000
Closing inventory (12,000)

?
Gross profit............... ?
Estimate:
i) The stock turnover ratio (2marks)
ii) The Margin (2marks)
iii) Returns on cost of sales (2marks)

b) Siaw Ltd has been legally permitted to offer 1,000,000 shares of Gh¢1.50 each. The company
has issued 700,000 shares. None of the shares has been fully paid up. So far the entity has made
calls of 80pesewas (GH¢0.80) per share. All the calls have been paid by holders except for
200,000 owing from one shareholder.
Required: Estimate the following
i) Paid up capital (1mark)
ii) The unpaid up capital (1mark)
iii) Value of shares floated (1mark)
iv) The unissued share capital (1mark)
v) The uncalled up capital (1mark)
vi) Authorized share capital (1mark)

Answer 1

Hi,

I have solved this question by calculating the cost of goods and gross profit in part (a) and part (b) paid-up capital is paid up to call amount received i.e. GHc 0.80.