RequiredA. Describe the concerns of the following stakeholders and indicate whatinformation included in the annual report might help satisfy these concerns:ShareholdersLendersYou should include the calculation and interpretation of relevant ratios usingthe information for Emerald plc, for each of the above stakeholders.B. The directors are considering two schemes to raise £5,000,000 to fund a newpremises. It is estimated that this will ultimately increase profit before interestand tax by £700,000 per annum. The management team are considering thefollowing options:i. An issue of 13% debentures redeemable in 25yearsii. A rights issue at £1.80 per share. The current market price is £2.00 pershare.Assume a corporate tax rate of 20%RequiredAdvise management which scheme they should adopt with calculations tosupport your recommendation.Also explain what other factors should be taken into consideration whenmaking the decision. QUESTION 1Emerald plc is a wholesaler. Its summarised financial statements for the year ended30 June 2022 (and 2021 comparatives) are as follows:Sales revenueGross profitDistribution costsAdministrative expensesOperating profitInterest receivableInterest payableProfit before taxationTaxationProfit after taxatonDividends in SOCENon-current assetsIntangible assetsTangible assetsInvestmentsCurrent assetsInventoryTrade receivablesCash & bank.Current liabilitiesNet assetsEquity and reservesOrdinary shares of 50p eachShare premium accountRevaluation reserveRetained earningsNon-current liabilitiesDebentures2022£0009,6002,400(400)(1,200)80064(200)664(192)472¶¶¶¶¶60005,8006806,4802001,4002001,800(1,038)7,2429009001,5753,0676,4428007,242▼2021£00013,5003,510(540)(900)2,07090(315)1,845(648)1,19754006,3007207,020*3*342702,2501802,700(1,350)8,3709009001,5753,1956,5701,8008,370

Analysis of Financial Performance A comprehensive method for assessing a firm's financial position…

A. Describe the concerns of the following stakeholders and indicate what information included in the annual report might help satisfy these concerns: Shareholders • Lenders You should include the calculation and interpretation of relevant ratios using the information for Emerald plc, for each of the above stakeholders.

A. Describe the concerns of the following stakeholders and indicate what information included in the annual report might help satisfy these concerns: Shareholders • Lenders You should include the calculation and interpretation of relevant ratios using the information for Emerald plc, for each of the above stakeholders.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Identify at least two different ratios from the standpoint of an investor or creditor in determining the financial health of an organization. Describe how the measure is calculated and the reason for selecting the two ratios that you chose.
Identify and explain the six financial ratios used to evaluate liquidity as part of the firm’s businessanalysis
Which of the following is most associated with financial accounting reports? a.prepared in accordance with GAAP b.can have both objective and subjective information c.can be prepared for the entity or segment d.can be prepared periodically, or as needed
What significant information should each of the following be aware of in the financial statements and why? A.shareholders B. Prospective investors C. Government D. Customer/clients E. Creditors
Please help me evaluate these financial ratios to identify any trends or issues and potential reasons for them. Could Covid have played a role? Please help me interpret the ratios in Group B from managements perspective from period 12/31/19 & 6/30/20
According to the new Conceptual Framework, who among the following are primary users of financial reports? I. Existing and/or potential creditors; II. Shareholders; III. General public a. I and II b. I and III c. II and III d. All of the above
the financial report must provide a true and fair view. discuss this term "true and fair" and give examples how a company meet this requirement?
Please answer the following question and read the discussion question rubric: What is the primary objective of financial accounting, and explain the role of the SEC and FASB?
can you help on the preperation of excel The income statement. The statement of retained earnings. The balance sheet. Ratios that can be calculated from the data presented.
Which of the following accounting concepts do accountantsand auditors assess by using financial analyses?a. Time period. c. Full disclosure.b. Separate entity. d. Going-concern assumption.