From the following information regarding the year to 31 August 20X6, what is the accounts payable payment period You

should calculate the ratio using purchases as the denominator.

$

Sales43,000

Cost of sales32,500

Opening inventory6,000

Closing inventory3,800

Trade accounts payable at 31 August 20X64,750

40 days

50 days

53 days

57 days

Which of the following transactions would result in an increase in capital employed

Selling inventory at a profit

Writing off a bad debt

Paying a payable in cash

Increasing the bank overdraft to purchase a non-current asset

A company's gross profit as a percentage of sales increased from 24% in the year ended 31 December 20X1 to 27% in the

year ended 31 December 20X2.

Which of the following events is most likely to have caused the increase

An increase in sales volume

A purchase in December 20X1 mistakenly being recorded as happening in January 20X2

Overstatement of the closing inventory at 31 December 20X1

Understatement of the closing inventory at 31 December 20X1

Which one of the following would help a company with high gearing to reduce its gearing ratio

Making a rights issue of equity shares

Issuing further long-term loan notes

Making a bonus issue of shares

Paying dividends on its equity shares

Set out below are the financial statements of Emma, a limited liability company. You have been asked to prepare the company's statement of cash flows, implementing IAS 7 Statement of cash flows.

EMMA

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2

$＇000

Sales revenue 2,553

Cost of sales 1,814

Gross profit 739

Distribution costs 125

Administrative expenses 264

Operating profit 350

Interest received 25

Interest paid 75

Profit before tax 300

Income tax expense 240

Profit for the year 60

EMMA

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER

20X2 20X1

$'000 $'000

Non-current assets

Tangible assets 380 305

Intangible assets 250 200

Investments -- 25

630 530

Current assets

Inventories 150 102

Receivables 390 315

Short-term investments 50 --

Cash in hand 2 1

592 418

1,222 948

Equity and liabilities

Share capital ($1 ordinary shares) 200 150

Share premium account 160 150

Revaluation surplus 100 91

Retained earnings 160 100

620 491

Non-current liabilities

Long-term loan 100 --

Current liabilities

Trade payables 127 119

Bank overdraft 85 98

Taxation 290 240

502 457

1,222 948

The following information is available.

(a) The proceeds of the sale of non-current asset investments amounted to $30,000.

(b) Fixtures and fittings, with an original cost of $85,000 and a carrying amount of $45,00 ,were sold for $32,000 during the year.

(c) The current asset investments fall within the definition of cash equivalents under IAS 7.

(d) The following information relates to property, plant and equipment.

31.12.20X2 31.12.20X1

$'000 $'000

Cost 720 595

Accumulated depreciation 340 290

Carrying amount 380 305

(e) 50,000 $1 ordinary shares were issued during the year at a premium of 20c per share.

【論述題】

Prepare a statement of cash flows for the year to 31 December 20X2 using the format laid out in IAS 7,together with the relevant notes to the statement.

A business operates on a gross profit margin of 331/3%. were $680.Gross profit on a sale was $800, and expenses

What is the net profit margin

3.75%

5%

11.25%

22.67%

A company has the following details extracted from its statement of financial position：

$'000

Inventories 1,900

Receivables 1,000

Bank overdraft 100

Payables1,000

The industry the company operates in has a current ratio norm of 1.8. Companies who manage liquidity well in this industry

have a current ratio lower than the norm.

Which of the following statements accurately describes the company’s liquidity position

Liquidityappears tobewell managed asthe bankoverdraft is relatively low

Liquidityappears tobepoorly-controlledasshownbythelarge payables balance

Liquidityappears tobepoorly-controlledasshownbythecompany’s relatively highcurrent ratio

Liquidityappears tobepoorly-controlledasshownbytheexistence of a bank

Why is analysis of financial statements carried out

So that the analyst can determine a company’s accounting policies

So that the significance of financial statements can be better understood through comparisons

with historical performance and with other companies

To get back to the ‘real’ underlying figures, without the numbers being skewed by the

requirements of International Financial Reporting Standards

To produce a report that can replace the financial statements, so that the financial statements

no longer need to be looked at

Calculate the net profit percentage ratio for Black and Bury and comment on this ratio for the two companies.

Prepare the consolidated statement of financial position for the Prestend group as at 31 October 20X7.Note. A working should be included for group retained earnings. Disclosure notes are not required.