Question
In: Accounting
The following information applies to BritanniaBritannia Ltd. for the year ended 31 December 2009: !!ERROR Profit...
The following information applies to
BritanniaBritannia
Ltd. for the year ended 31 December 2009:
|
!!ERROR |
Profit after interest and tax (£) |
7,500 |
|
|
Number of shares in issue |
77,000 |
||
|
Total dividends for year (£) |
3,205 |
||
|
Market value per share (pence) |
83 |
||
|
Profit before interest and tax (£) |
29,600 |
Requirement:
Compute the price/earnings (PE) ratio for
BritanniaBritannia
Ltd. for 2009.
First, calculate the earnings per share (EPS) for the company as follows:
(Show your answer in pence, to two decimal places.)
|
EPS |
= |
|
= |
|
= |
nothing pence |
Next you can calculate the price/earnings ratio.
|
PE Ratio |
= |
|
The calculation of the price/earnings ratio for
BritanniaBritannia
Ltd. is:
(Show your answer in 'times', to two decimal places.)
|
PE ratio |
= |
|
= |
nothing times |
You are informed that the company's PE ratio on 31 December 2009 was three times as high as the figure calculated at
31 December 200831 December 2008.
Which one of the following statements is correct?
A.
The company has definitely not earned any more profit during this year.
B.
The company has definitely issued more shares in this year.
C.
The stock market appears to be less confident about the company's future.
D.
The stock market appears to be more confident about the company's future.
Choose from any list or enter any number in the input fields, then continue to the next question.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The FOllowing information from the accounts of kesha Ltd for the year ended December 31, 2009...
The
FOllowing information from the accounts of kesha Ltd for the year
ended December 31, 2009 has been provided to you:
Net icome................................2,090,000
Amortization of intangible assert.............120,000
Proceeds from issue of ord. share...........1,030,000
Increase in
inventory...............................180,000
Sale of building at shs 100,000 gain........850,000
Increase in accounts payable...........150,000
Purchase of computer equipment........1,250,000
Payments of cash dividends..............240,000
Depreciation expense...................350,000
Increase in accounts receivable...........230,000
Payment of mortagage.................520,000
Decrease in short-term notes payable.......80,000
Sale of land at shs 50,000 loss............260,000
Purchase of delivery truck.................330,000...
The following information relates to Walnut Ltd. for the year ended December 31, 2013: Sales  
The following information relates to
Walnut Ltd. for the year ended December 31, 2013:
Sales $3,500,000
Purchases:
Direct
materials $700,000
Indirect
materials $50,000
Office
supplies $20,000
Salaries $500,000
*
Direct
labour $800,000
Rent $100,000
*
Utilities $80,000
*
Advertising and
promotional $30,000
Inventories: Dec.
31,
2012 Dec.
31, 2013
Direct
materials $45,000 $62,000
Indirect
materials ----- $
9,000
Office
supplies $1,000 -----
Work-in-process $4,100 $3,300
Finished
goods $90,000 $81,700
*Of these costs, 80 % are assigned to
manufacturing activities and the remainder pertain to selling and
administrative functions.
(Assume
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Instructions:
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Net Income was $1,600,000
Depreciation expense was $270,000
Amortization expense for a patent was
$30,000
Interest paid was $250,000
Income taxes paid were $100,000
Ordinary shares were sold for $200,000
Preference shares (8% annual dividend) were sold at Par
value of $250,000
Dividends of $50,000 were paid on ordinary
shares
Preference dividends of $20,000 were paid
Equipment with a book value of $75,000 was sold...
The following selected information is available for Jones & Co. Ltd., for the year ended 31 December 20X8:
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Below is the information relating to The Funny Guys Ltd for the
year ended 31 December 2019:
The Funny Guys Ltd
Comparative Statement of financial positions
as at 31 December 2019
2019
2018
Assets
Cash
$1,885
$2,875
Accounts
receivable
44,650
29,250
Merchandise inventory
60,950
51,325
Investments (long
term)
40,300
43,500
Property, plant, and
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125,000
112,500
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0...
UK Ltd for the year ended 31 December 2018. Net Profit $500m Preference dividend $300m Share...
UK Ltd for the year ended 31 December 2018.
Net Profit
$500m
Preference dividend
$300m
Share outstanding- Average
4000m
Earnings effect
Shares effect
Convertible preference share
$300m
3000m
Convertible debt
$120m
3000m
Share options
5000m
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The diluted earnings per share for the year ended 31 December
2018 is 4.3 cents.
Required:
Assuming that the company made a one for two bonus issue on 3
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The following information relates to ABC Ltd., for the year ended 31st December, 2019.
The following information
relates to ABC Ltd., for the year ended 31st December,
2019.
Sales……………………………………………………………….. Rs.2,000,000.
EBID ………………………………………………………………. 40% of sales.
Ordinary Shares capital of par value Rs.10/each………………
Rs.800,000.
8% Preference shares Capital of par value Rs.100/ each……….
Rs.500,000.
10% Bonds payable of par value Rs.1000/each………………….
Rs.400,000.
Reserves and surplus………………………………………………Rs.250,000.
Current liabilities…………………………………………………..Rs.250,000.
Tax rate is 30%.
Market price of share is Rs.20 each.
Dividend payout ratio is 60%.
Required; Compute and comments
on each of the following ratios
a)Earning per...
QUESTION TWO The following are financial statements of Buchi Ltd for the year ended 31 December...
QUESTION TWO
The following are financial statements of Buchi Ltd for the year
ended 31 December 2019
Statement of comprehensive income for the year ended 31 December
2019
K
K
Revenue
900 000
Cost of sales
475 000
Gross profit
425 000
Operating expenses
220 000
Interest
13 000
Loss on sale of equipment
2 000
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Net profit before tax
190 000
Tax
65 000
Net profit after tax
125 000
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The following information is from Amos Company for the year ended December 31, 2019.
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Cash dividends declared and paid during the year, $22,000.
Two years ago, it forgot to record depreciation expense of $36,600 (net of tax benefit).
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for the year ended December 31. At Cost At Retail January 1
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2,699,294 6,281,150 Sales 5,513,700 Sales returns 46,400 Required:
1. Use the retail inventory method to estimate the company’s
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retail prices yields a total inventory of $1,693,800. Prepare a
calculation showing the company’s loss from shrinkage at cost and
at...
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