Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30 June 2017 Non-Current Assets 2017 2018 2019 Plant, Property and Equipment 425,000 405,000 399,000 Current Assets Short-term Investments 0 0 4,300 Inventory 89,300 90,000 70,500 Receivables 161,800 166,500 140,400 Total Assets 676,100 661,500 614,200 Equity and Liabilities Share Capital 100,000 100,000 100,000 Revaluation Reserve 29,000 65,800 82,350 Retained earnings 214,400 286,800 384,050 Total Equity 343,400 452,600 566,400 Non-current Liabilities Loan 260,000 170,000 10,000 Current Liabilities Trade Payables 67,700 36,000 35,000 Overdraft 5,000 2,900 2,800 Total Equity and Liabilities 676,100 661,500 614,200 Statement of Comprehensive Income for the Year Ended 30 June 2019 2018 2019 Revenue 1,247,000 890,000 Cost of Goods Sold 839,500 576,000 Gross Profit 407,500 314,000 Administrative Expenses 56,800 51,000 Distribution Costs 118,700 79,000 Profit from Operations (EBIT) 232,000 184,000 Finance Cost 12,000 5,000 Profit Before Tax 220,000 179,000 Company Tax Expense 67,600 41,750 Net Income 152,400 137,250 Gain on Revaluation (OCI) 36,800 16,550 Total Comprehensive Income 189,200 153,800 Dividend approved Required: 80,000 40,000 Calculate the following ratios for in 2018 and 2019 1. Quick ratio. In this calculation you are to use the end-of-yearnumbers. 2. Gearing Ratio. In this calculation you are to use the end-of-yearnumbers. 3. Interest Cover 4. Dividend Cover 5. ROCE (Return on Capital Employed). In this calculation you are to use the average capital employed. Please note that ROCE in this context also means ROTC (Return on total Capital). Please do not confuse ROCE here with Return on Common Equity. That is an American term and is not needed in this examination question.

Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30 June 2017 Non-Current Assets 2017 2018 2019 Plant, Property and Equipment 425,000 405,000 399,000 Current Assets Short-term Investments 0 0 4,300 Inventory 89,300 90,000 70,500 Receivables 161,800 166,500 140,400 Total Assets 676,100 661,500 614,200 Equity and Liabilities Share Capital 100,000 100,000 100,000 Revaluation Reserve 29,000 65,800 82,350 Retained earnings 214,400 286,800 384,050 Total Equity 343,400 452,600 566,400 Non-current Liabilities Loan 260,000 170,000 10,000 Current Liabilities Trade Payables 67,700 36,000 35,000 Overdraft 5,000 2,900 2,800 Total Equity and Liabilities 676,100 661,500 614,200 Statement of Comprehensive Income for the Year Ended 30 June 2019 2018 2019 Revenue 1,247,000 890,000 Cost of Goods Sold 839,500 576,000 Gross Profit 407,500 314,000 Administrative Expenses 56,800 51,000 Distribution Costs 118,700 79,000 Profit from Operations (EBIT) 232,000 184,000 Finance Cost 12,000 5,000 Profit Before Tax 220,000 179,000 Company Tax Expense 67,600 41,750 Net Income 152,400 137,250 Gain on Revaluation (OCI) 36,800 16,550 Total Comprehensive Income 189,200 153,800 Dividend approved Required: 80,000 40,000 Calculate the following ratios for in 2018 and 2019 1. Quick ratio. In this calculation you are to use the end-of-yearnumbers. 2. Gearing Ratio. In this calculation you are to use the end-of-yearnumbers. 3. Interest Cover 4. Dividend Cover 5. ROCE (Return on Capital Employed). In this calculation you are to use the average capital employed. Please note that ROCE in this context also means ROTC (Return on total Capital). Please do not confuse ROCE here with Return on Common Equity. That is an American term and is not needed in this examination question.

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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Question

Below are the financial statements for Aspirations Pty Ltd.

Statement of Financial Position at 30 June 2017

Non-Current Assets	2017	2018	2019
Plant, Property and Equipment	425,000	405,000	399,000
Current Assets
Short-term Investments	0	0	4,300
Inventory	89,300	90,000	70,500
Receivables	161,800	166,500	140,400
Total Assets	676,100	661,500	614,200
Equity and Liabilities
Share Capital	100,000	100,000	100,000
Revaluation Reserve	29,000	65,800	82,350
Retained earnings	214,400	286,800	384,050
Total Equity	343,400	452,600	566,400
Non-current Liabilities
Loan	260,000	170,000	10,000
Current Liabilities
Trade Payables	67,700	36,000	35,000
Overdraft	5,000	2,900	2,800
Total Equity and Liabilities	676,100	661,500	614,200

Statement of Comprehensive Income for the Year Ended 30 June 2019

	2018	2019
Revenue	1,247,000	890,000
Cost of Goods Sold	839,500	576,000
Gross Profit	407,500	314,000
Administrative Expenses	56,800	51,000
Distribution Costs	118,700	79,000
Profit from Operations (EBIT)	232,000	184,000

Finance Cost	12,000	5,000
Profit Before Tax	220,000	179,000
Company Tax Expense	67,600	41,750
Net Income	152,400	137,250
Gain on Revaluation (OCI)	36,800	16,550
Total Comprehensive Income	189,200	153,800
Dividend approved Required:	80,000	40,000

Calculate the following ratios for in 2018 and 2019

1. Quick ratio. In this calculation you are to use the end-of-yearnumbers.

2. Gearing Ratio. In this calculation you are to use the end-of-yearnumbers.

3. Interest Cover

4. Dividend Cover

5. ROCE (Return on Capital Employed). In this calculation you are to use the average capital employed. Please note that ROCE in this context also means ROTC (Return on total Capital). Please do not confuse ROCE here with Return on Common Equity. That is an American term and is not needed in this examination question.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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