Abbey's trial balance at 31-Dec-2021 is shown below Cost of Sales/Sales Office Costs Plant Cost/Depreciation Staff wages Cash at Bank Inventory £1NV Shares Retained earnings Receivables/Payables Totals £ - Dr 195,000 20,000 £-Cr 295,000 200,000 120,000 16,000 77,000 35,000 100,000 60,000 67,000 610,000 35,000 610,000 Notes 1) Office costs include prepaid expenditure of £5,000. 2) A 1:5 Bonus Issue occurred on 01-Jan-2021. 3) Plant (cost £80,000) was damaged on 30-Jun-21. Remaining life of this plant is 3 years, value-in-use £24,000, & scrap value £15,000. 4) Plant depreciation is 10% p.a. (straight line basis). 5) Company tax rates were 20%. 6) A dividend of 10p per share has been agreed. Required: For Y/e Dec-21, prepare the following: a) Financial Position Statement b) Income Statement c) Change in Equity Statement d) Calculate: Return on Capital Employed Profit Margin in Sales Dividend Cover Ratio
Abbey's trial balance at 31-Dec-2021 is shown below Cost of Sales/Sales Office Costs Plant Cost/Depreciation Staff wages Cash at Bank Inventory £1NV Shares Retained earnings Receivables/Payables Totals £ - Dr 195,000 20,000 £-Cr 295,000 200,000 120,000 16,000 77,000 35,000 100,000 60,000 67,000 610,000 35,000 610,000 Notes 1) Office costs include prepaid expenditure of £5,000. 2) A 1:5 Bonus Issue occurred on 01-Jan-2021. 3) Plant (cost £80,000) was damaged on 30-Jun-21. Remaining life of this plant is 3 years, value-in-use £24,000, & scrap value £15,000. 4) Plant depreciation is 10% p.a. (straight line basis). 5) Company tax rates were 20%. 6) A dividend of 10p per share has been agreed. Required: For Y/e Dec-21, prepare the following: a) Financial Position Statement b) Income Statement c) Change in Equity Statement d) Calculate: Return on Capital Employed Profit Margin in Sales Dividend Cover Ratio
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Abbey's trial balance at 31-Dec-2021 is shown below
Cost of Sales/Sales
Office Costs
Plant Cost/Depreciation
Staff wages
Cash at Bank
Inventory
£1NV Shares
Retained earnings
Receivables/Payables
Totals
£ - Dr
195,000
20,000
£-Cr
295,000
200,000
120,000
16,000
77,000
35,000
100,000
60,000
67,000
610,000
35,000
610,000
Notes
1) Office costs include prepaid expenditure of £5,000.
2) A 1:5 Bonus Issue occurred on 01-Jan-2021.
3) Plant (cost £80,000) was damaged on 30-Jun-21. Remaining life of
this plant is 3 years, value-in-use £24,000, & scrap value £15,000.
4) Plant depreciation is 10% p.a. (straight line basis).
5) Company tax rates were 20%.
6) A dividend of 10p per share has been agreed.
Required:
For Y/e Dec-21, prepare the following:
a) Financial Position Statement
b) Income Statement
c) Change in Equity Statement
d) Calculate:
Return on Capital Employed
Profit Margin in Sales
Dividend Cover Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F739b53f9-9c51-4f85-88c4-e1bb6b7321a1%2F38679f1f-a3f6-46c5-a760-40faca359ed2%2Fy5ty8tf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Abbey's trial balance at 31-Dec-2021 is shown below
Cost of Sales/Sales
Office Costs
Plant Cost/Depreciation
Staff wages
Cash at Bank
Inventory
£1NV Shares
Retained earnings
Receivables/Payables
Totals
£ - Dr
195,000
20,000
£-Cr
295,000
200,000
120,000
16,000
77,000
35,000
100,000
60,000
67,000
610,000
35,000
610,000
Notes
1) Office costs include prepaid expenditure of £5,000.
2) A 1:5 Bonus Issue occurred on 01-Jan-2021.
3) Plant (cost £80,000) was damaged on 30-Jun-21. Remaining life of
this plant is 3 years, value-in-use £24,000, & scrap value £15,000.
4) Plant depreciation is 10% p.a. (straight line basis).
5) Company tax rates were 20%.
6) A dividend of 10p per share has been agreed.
Required:
For Y/e Dec-21, prepare the following:
a) Financial Position Statement
b) Income Statement
c) Change in Equity Statement
d) Calculate:
Return on Capital Employed
Profit Margin in Sales
Dividend Cover Ratio
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education