Question 2 Below are the recent Balance Sheet and Income Statement of UGS Trading: Balance Sheet...

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Question 2 Below are the recent Balance Sheet and Income Statement of UGS Trading: Balance Sheet as at 31.12.yyyy Yr 2021 Yr 2020 (figures in thousands) Assets Cash Current Assets 1622 1350 Fixed Assets 6438 4500 Accumulated Depreciation (1740) (1500) Investment in affiliate 2030 1950 Total Assets 8350 6300 Liabilities Account Payable 590 360 Other Accruals 260 240 Current Liabilities 850 600 Bank Loan 510 130 Bond due in year 2030 Provision for Income Tax 130 130 60 40 Total Liabilities 1550 900 Equities Share Capital Retained Earnings Total Equity 4500 3300 2300 2100 6800 5400 Total Liabilities & Equities 8350 6300 (figures in thousands) Sales 19950 Cost of Goods Sold (10698) 9252 Gross Profit General & Selling Expenses Depreciation Gain on Sale of Fixed Asset (7100) (240) 8 Earnings before Interest & Tax Interest 1920 (50) Earnings before Tax 1870 Тах (920) Net Income 950 (a) Examine the Cash Flow from Assets (CFFA) for the Year 2021? (10 marks) (b) Examine the Cash Flow to Creditors (CFTC) for the Year 2021? (5 marks) (c) Examine the Cash Flow to Shareholders (CFTS) for the Year 2021? (5 marks) (d) Appraise three (3) key points that you could draw from these three sets of cash flows? (15 marks) Discuss how the firm was financed in Year 2021 by commenting on the level of gearing in Year 2021. (e) (10 marks) (f) Henceforth, infer the likely level of the Return of Equity in the previous Year 2020. Justify your response. (5 marks) Question 2 Below are the recent Balance Sheet and Income Statement of UGS Trading: Balance Sheet as at 31.12.yyyy Yr 2021 Yr 2020 (figures in thousands) Assets Cash Current Assets 1622 1350 Fixed Assets 6438 4500 Accumulated Depreciation (1740) (1500) Investment in affiliate 2030 1950 Total Assets 8350 6300 Liabilities Account Payable 590 360 Other Accruals 260 240 Current Liabilities 850 600 Bank Loan 510 130 Bond due in year 2030 Provision for Income Tax 130 130 60 40 Total Liabilities 1550 900 Equities Share Capital Retained Earnings Total Equity 4500 3300 2300 2100 6800 5400 Total Liabilities & Equities 8350 6300 (figures in thousands) Sales 19950 Cost of Goods Sold (10698) 9252 Gross Profit General & Selling Expenses Depreciation Gain on Sale of Fixed Asset (7100) (240) 8 Earnings before Interest & Tax Interest 1920 (50) Earnings before Tax 1870 Тах (920) Net Income 950 (a) Examine the Cash Flow from Assets (CFFA) for the Year 2021? (10 marks) (b) Examine the Cash Flow to Creditors (CFTC) for the Year 2021? (5 marks) (c) Examine the Cash Flow to Shareholders (CFTS) for the Year 2021? (5 marks) (d) Appraise three (3) key points that you could draw from these three sets of cash flows? (15 marks) Discuss how the firm was financed in Year 2021 by commenting on the level of gearing in Year 2021. (e) (10 marks) (f) Henceforth, infer the likely level of the Return of Equity in the previous Year 2020. Justify your response. (5 marks)

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Cash flow from afets for the Curreny in sands and curent not mentioned 9 year 202... View the full answer