Amos Ltd has operated as a private limited company for 80 years. The company is facing increased competition and it has been decided to sell the business as a going concern. The financial situation is as shown on the balance sheet:
Statement of financial position as at 30 June 2014

Required
Prepare valuations per share of Amos Ltd using:
(i) Book value basis.
(ii) Adjusted book value.

Transcribed Image Text:

Fixed (non-current) assets lremises Equipmcnt Investments 50U,000 125,000 675,000 Current assets Stock Debtors Bank 85,000 120,000 25,000 230,000 Creditors: amounts due within one year Trade creditors Dividends (55,000) (85,000) 150,0 Net current assets Total asscts lcss current liabilitics Creditors: amounts due afier one year Secured loan stock 755,000 Net assets 670,000 Financed by Ordinary shares (50p par value) Reserves Profit and loss account 500,000 55,000 115,000 670,000 Shareholders' funds The current market values of the fixed (non-current) assets are estimated as: Premises Equipment Investments 780,000 50,000 90,000 Only 90 per cent of the debtors are thought likely to pay.