The following are the accounts of United Forward Trading Limited, a company that engages in Shipping...

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The following are the accounts of United Forward Trading Limited, a company that engages in Shipping and container services for the years ended 31 December 2014 and 215 respectively. Statements of Comprehensive Income for the Years ended 31 December 2015 and 2014: Profit before interest and Tax Interest Expenses Profit before Tax Taxation Profit after Tax Dividends paid Retained Profit 2015 $'000 7,900 450 7.450 730 6,720 500 6.220 2014 $'000 4,500 300 4,200 520 3,680 500 7.180 Statements of Financial Position as at 31 December 2015 and 2014 Non-Current Assets (Written down value) Current Assets: Inventories Receivables Total Creditors: Amounts due within one Year: Trade Payables xador Bank Total assets less current liabilities 2015 $'000 7.350 2.900 6.700 9.600 16 950 2015 $'000 2 500 550 1.870 4 520 12 430 2014 $'000 6.600 2.300 3.500 5.000 2014 $'000 2.200 450 1550 3.500 9100 Creditors: Amount due after more than one Year. 10% Debentures (2012-2017) Total Assets Capital & Reserves EE Share Capital Ordinary Shares of 50c each fully paid Share Premium Retained Earnings Required: a. Calculate the company's ratio for the following Potential Shareholders/Investors: Return on equity Earnings per share Dividend cover Gearing ratio Ratios for Potential Lenders: 1. Debt to equity Interest cover current ratio Acid test 2015 $'000 2,500 2015 $'000 5,000 3,500 6.430 14.930 2014 $'000 2,500 11.600 $'000 5,000 3,500 I b. Report briefly on the performance and state of the business from the view point of a potential shareholders and a potential lender using the ratios calculated above. In your report, explain any weaknesses in these ratios? Question No.2 Part A On January 1, 2020, Niche Corporation Limited has 450,000 non par common stock issued and outstanding and 250,000 preference shares. On June 30, 2020 the company issued an additional 135,000 common stock at $7.00 per share. Income after tax was $2,200,000 for the financial year ending 31 December 2020 and the income tax rate 35 percent. On September 1, 2020 a 15% stock dividend was issued to all common stockholders. On October 1, 2021 60,000 common stock shares were reacquired as treasury shares and income before tax for 2021 was $4,200,000 and the tax rate was 40 percent. Required: L i Part 8 Access Enterprise Limited has reported net income of $1,125,000 at the end of 2018 and the income tax rate was 40%. On January 1, 2018 the company has 500,000 ordinary shares outstanding and 5,000 preference shares at 10% at par of $10 per share. On July 1, 2018 and additional 60,000 ordinary shares were sold. On January 1, 2019 the company converted 1,000 10% bands of $1,000 each for 30,000 common stock and the income before tax for 2019 was $2,300,000. The tax rate for 2019 was 30 percent. Compute the weighted average number of common stock outstanding for 2020 and 2021? Computer the basic EPS for 2020 and 2021? Required: 1. Part C 1. Calculate the basic EPS for 2018? Calculate the diluted EPS for 2019? Outline the disclosure requirements required for AS 337 List three limitations of EPS as a performance measure? The following are the accounts of United Forward Trading Limited, a company that engages in Shipping and container services for the years ended 31 December 2014 and 215 respectively. Statements of Comprehensive Income for the Years ended 31 December 2015 and 2014: Profit before interest and Tax Interest Expenses Profit before Tax Taxation Profit after Tax Dividends paid Retained Profit 2015 $'000 7,900 450 7.450 730 6,720 500 6.220 2014 $'000 4,500 300 4,200 520 3,680 500 7.180 Statements of Financial Position as at 31 December 2015 and 2014 Non-Current Assets (Written down value) Current Assets: Inventories Receivables Total Creditors: Amounts due within one Year: Trade Payables xador Bank Total assets less current liabilities 2015 $'000 7.350 2.900 6.700 9.600 16 950 2015 $'000 2 500 550 1.870 4 520 12 430 2014 $'000 6.600 2.300 3.500 5.000 2014 $'000 2.200 450 1550 3.500 9100 Creditors: Amount due after more than one Year. 10% Debentures (2012-2017) Total Assets Capital & Reserves EE Share Capital Ordinary Shares of 50c each fully paid Share Premium Retained Earnings Required: a. Calculate the company's ratio for the following Potential Shareholders/Investors: Return on equity Earnings per share Dividend cover Gearing ratio Ratios for Potential Lenders: 1. Debt to equity Interest cover current ratio Acid test 2015 $'000 2,500 2015 $'000 5,000 3,500 6.430 14.930 2014 $'000 2,500 11.600 $'000 5,000 3,500 I b. Report briefly on the performance and state of the business from the view point of a potential shareholders and a potential lender using the ratios calculated above. In your report, explain any weaknesses in these ratios? Question No.2 Part A On January 1, 2020, Niche Corporation Limited has 450,000 non par common stock issued and outstanding and 250,000 preference shares. On June 30, 2020 the company issued an additional 135,000 common stock at $7.00 per share. Income after tax was $2,200,000 for the financial year ending 31 December 2020 and the income tax rate 35 percent. On September 1, 2020 a 15% stock dividend was issued to all common stockholders. On October 1, 2021 60,000 common stock shares were reacquired as treasury shares and income before tax for 2021 was $4,200,000 and the tax rate was 40 percent. Required: L i Part 8 Access Enterprise Limited has reported net income of $1,125,000 at the end of 2018 and the income tax rate was 40%. On January 1, 2018 the company has 500,000 ordinary shares outstanding and 5,000 preference shares at 10% at par of $10 per share. On July 1, 2018 and additional 60,000 ordinary shares were sold. On January 1, 2019 the company converted 1,000 10% bands of $1,000 each for 30,000 common stock and the income before tax for 2019 was $2,300,000. The tax rate for 2019 was 30 percent. Compute the weighted average number of common stock outstanding for 2020 and 2021? Computer the basic EPS for 2020 and 2021? Required: 1. Part C 1. Calculate the basic EPS for 2018? Calculate the diluted EPS for 2019? Outline the disclosure requirements required for AS 337 List three limitations of EPS as a performance measure?

Answer rating: 100% (QA)

Part A i Calculate the companys ratios for potential shareholdersinvestors 1 Return on equity ROE ROE Profit after Tax Shareholders Equity x 100 ROE for 2015 6720 6220 x 100 10774 ROE for 2014 3680 31... View the full answer