Choose the correct answer for each question.
Information needed to complete the quiz
Chapter 13
Question 1 & 2
Prakash and Pizzey Limited have the following relevantinformation in their
financial statements drawn up to 31 May 20X4:
£ | |
| Gross profit | 984 217 |
| Various expenses | 557 032 |
| Operating profit | 427 185 |
| Interest payable | 93 700 |
| Profit before taxation | 333 485 |
| Taxation | 94 440 |
| Profit after taxation | 239 045 |
| Dividends | 150 000 |
| Profit for the financial year | 89 045 |
Extracts from the balance sheet:
| Share capital (£1 shares) | 200 000 |
| Reserves | 1 825 450 |
| Loan capital | 1 300 000 |
Question 4
Parmar Wallace Limited has the following working capitalitems in its balance
sheet at 31 March 20X5:
£ | £ | |
| Stock | 259 270 | |
| Debtors | 224 750 | |
| Less: provisions | (8 620) | |
216 130 | ||
| Cash at bank | 17 526 | |
| Trade creditors | 298 442 |
The company belongs to a trade association which has recently published industry
averages for key financial ratios based upon asurvey of its members. The industry
averages for current and quick ratios are:
| Current ratio | 1.82:1 |
| Quick ratio | 0.93:1 |
Question 5
Ptarmigan Poleaxe Limited has the following details relating to its fixed assets
in its balance sheet at 31 August 20X3:
£ | £ | £ | |
| Land | 65 000 | - | 65 000 |
| Buildings | 100 000 | 12 000 | 88 000 |
| Plant and machinery | 176 700 | 53 500 | 123 200 |
The company made sales of £424 600 less returns of £13 259in the
year.
Question 7
Porter Plymouth Limited has the following informationrelevant to debtors and
sales in its balance sheet at 31 December 20X5:
£ | |
| Sales (75% of which are on credit) | 1 670 227 |
| Debtors | 165 923 |
| Less: provisions for doubtful debts | (18 552) |
147 371 |
Questions 8 & 9
Plinlimmon Pleasance plc is a quoted company. Extracts fromits financial statements
for the year ending 28 February 20X2 include thefollowing:
£000 | |
| Turnover | 22 840 |
| Operating profit | 6 149 |
| Interest payable | (1 437) |
| Profit before taxation | 4 712 |
| Taxation | (1 500) |
| Profit after taxation | 3 312 |
| Dividends | (860) |
| Retained profit | 2 452 |
The company has 5 000 000 25p ordinary shares in issue. At28 February 20X2
the market price of one share was £3.83.
Question 10
At 31 May 20X6 Palethorpe and Swizzell plc has a marketcapitalisation of £13
950 000 with 5 000 000 50p ordinary shares in issue.
Extracts from the company’s profit and loss account at thatdate show:
£000 | |
| Operating profit | 2 256 |
| Interest payable | (600) |
| Profit before taxation | 1 656 |
| Taxation | (536) |
| Profit after taxation | 1 120 |
| Dividends | (500) |
| Retained profit | 620 |