(b)Assume that Angostura is currently operating at fullcapacity.All costs/expenses/income and net working capital vary directly withsales/revenue.Interest Expenses will remainunchanged.The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%? The House of Angostura known as Angostura Linmited, is a Trinidad and Tobago companyfamous for the production of Angostura bitters, invented by the company's founder. Thecompany is also a distiller and is the major producer of rum in Trinidad and Tobago. Thecompany also has been used as a vehicle for international expansion by its parent company.CL Financial. As a result of these acquisitions, the company owns distillers in the UnitedStates, Canada, The Bahamas and Suriname.The company was founded around 1830 in the Venezuelan town of Angostura (now CiudadBolívar) by a German doctor, Johann Gottlieb Benjamin Siegert, Surgeon-General in SimonBolivar's army in Venezuela. Around 1820 he had tried to find a medicine to improve appetiteand digestive well-being of the soldiers. He finally arrived at a unique blend of herbs in 1824.In 1830, Siegert exported his unique aromatic bitters to England and Trinidad. Upon his deathin 1870, Siegert left the care of the company to his younger brother and son, whosubsequently moved it to Port of Spain, Trinidad six years later in 1876. Over the course oftime, Angostura bitters became the only supplier to the King of Prussia, Spain, and KingGeorge V. Angostura Holdings LimitedIncome StatementFor the Years ended Dec 2018 and 201920192018s'00000,$SalesCost of Sales847,200783,692Gross Profit-429,723-392,209Distribution Costs417.477391,483-140,205Admin ExpensesOther Operating Expenses-145,010-88,713-69,935Interest Income-4,304-2,487Other Comprehensive Income8,6485,2019.434-1,337Earnings Before Interest and TaxesInterest Expense202,337177,915-559-312Taxable Income201,778177,603Taxation-59,935-47,685Net Income141,843129,918Dividends-57,744Addition to Retained Earnings84,099Angostura Holdings LimitedStatement of Financial Position (Abridged)For the period ending Dec, 31 20192019201820192018('000s)('000s)("000s)("000s)LIABILITIES ANDASSETSEQUITYCurrent AssetsCurrent LiabilitiesInventories253,769245,491 Accounts PayablesOther Current107 29980,929Accounts Receivables185,870145.742 Liabilities165724098Other Current Assets411461318475123,87185.027Cash & Equivalents103,151119,075 Non-current Liabilities77,33775,705954,251828,783 Total Liabilities201,208160.732Non-Current Assets,387,117 EquityShare CapitalNet388.458221588219354Retained Earnings919.913835,814Total Equity1,141.5011,055,168TOTAL ASSETS1,342,7091,215.900 TOTAL LIAB. & EQUITY1,342.7091,215.900

Additional Fund Needed For Calculating the additional fund needed first to calculate the projected…

(b)Assume that Angostura is currently operating at fullcapacity. All costs/expenses/income and net working capital vary directly withsales/revenue.Interest Expenses will remainunchanged. The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%?

(b)Assume that Angostura is currently operating at fullcapacity. All costs/expenses/income and net working capital vary directly withsales/revenue.Interest Expenses will remainunchanged. The tax rate and the dividend pay-out ratiowill remainconstant.How much additional debt is required, if any, if no new equity is raised and sales/revenue are projected to increaseby10%?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
tion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield
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