Page 541 - Microsoft Word - 00 ACCA F9 IWB prelims 2017.docx

Business valuations and market efficiency

Chapter 19

Question 1

Financial ratios

Connor Co has the following SFP and SPL information:

Statement of financial position as at 31 Dec

20X6 20X5
$000 $000
Non-current assets 4,900 4,600
Current assets:
Inventory 85 70
Receivables 750 600
Cash 0 50
–––– ––––
Total Assets 5,735 5,320
–––– ––––
Equity and liabilities:
Ordinary share capital ($1 shares) 3,150 3,000
Share premium 50 0
Retained earnings 550 400
–––– ––––
3,750 3,400
–––– ––––
Non-current liabilities:
8% loan notes 1,300 1,250
5% preference shares 300 300
Current liabilities:
Trade payables 255 370
Bank overdraft 130
–––– ––––
5,735 5,320
–––– ––––

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