Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30 June 2017     Non-Current Assets 2017 2018 2019 Plant, Property and Equipment 425,000 405,000 399,000 Current Assets       Short-term Investments 0 0 4,300 Inventory 89,300 90,000 70,500 Receivables 161,800 166,500 140,400 Total Assets 676,100 661,500 614,200 Equity and Liabilities

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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Below are the financial statements for Aspirations Pty Ltd.

Statement of Financial Position at 30 June 2017

 

 

Non-Current Assets

2017

2018

2019

Plant, Property and Equipment

425,000

405,000

399,000

Current Assets

 

 

 

Short-term Investments

0

0

4,300

Inventory

89,300

90,000

70,500

Receivables

161,800

166,500

140,400

Total Assets

676,100

661,500

614,200

Equity and Liabilities

 

 

 

Share Capital

100,000

100,000

100,000

Revaluation Reserve

29,000

65,800

82,350

Retained earnings

214,400

286,800

384,050

Total Equity

343,400

452,600

566,400

Non-current Liabilities

 

 

 

Loan

260,000

170,000

10,000

Current Liabilities

 

 

 

Trade Payables

67,700

36,000

35,000

Overdraft

5,000

2,900

2,800

Total Equity and Liabilities

676,100

661,500

614,200

 

 

Statement of Comprehensive Income for the Year Ended 30 June 2019

 

 

2018

2019

Revenue

1,247,000

890,000

Cost of Goods Sold

839,500

576,000

Gross Profit

407,500

314,000

Administrative Expenses

56,800

51,000

Distribution Costs

118,700

79,000

Profit from Operations (EBIT)

232,000

184,000

Finance Cost

12,000

5,000

Profit Before Tax

220,000

179,000

Company Tax Expense

67,600

41,750

Net Income

152,400

137,250

Gain on Revaluation (OCI)

36,800

16,550

Total Comprehensive Income

189,200

153,800

Dividend approved

 

80,000

40,000

Required: 

1. Dividend Cover
2. ROCE (Return on Capital Employed). In this calculation you are to use the average capital employed. Please note that ROCE in this context also means ROTC (Return on total Capital). Please do not confuse ROCE here with Return on Common Equity. That is an American term and is not needed in this examination question.
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