An analyst has compiled the following information relating to a company for the year ended 31 December 2021: Rands Liabilities at year-end Contributed capital at year-end Retained income at beginning of the year Revenue during the year Expenses during the year Income tax 298 000 500 000 344 000 2 000 000 1 460 000 Charged at 28% Required: Calculate the accounting value of the assets at year-end, based on the information provided above. 1.1 1.2 Calculate the return on equity (ROE) (to one decimal place) for the period and compare it to the industry average of 28%, in your answer provide two possible reasons why the amounts may differ.

An analyst has compiled the following information relating to a company for the year ended 31 December 2021: Rands Liabilities at year-end Contributed capital at year-end Retained income at beginning of the year Revenue during the year Expenses during the year Income tax 298 000 500 000 344 000 2 000 000 1 460 000 Charged at 28% Required: Calculate the accounting value of the assets at year-end, based on the information provided above. 1.1 1.2 Calculate the return on equity (ROE) (to one decimal place) for the period and compare it to the industry average of 28%, in your answer provide two possible reasons why the amounts may differ.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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