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Jesse Ltd SoFP at 31/12/2024 £'000 Buildings £'000 1,800 Equipment 2,100 £1NV Shares 975 Inventory 450 Reserves Cash & Receivables 150 10% Loan Stock 600 400 Assets 1,075 Payables 3,775 Equity & Liabilities 3,775 Assume Jesse could purchase new plant at the start of the year (01/01/2024) on the following terms:- a) b) Required: 1) Buy new plant from a 2:9 rights issue made at a premium of 50p per share. Plant value is £600,000 with a life of 6 years. Or, instead, lease the new plant over 6 years with interest at 20% & annual repayments of £180,000 paid in arrears. Prepare amended balance sheets at 31/12/2024 for each option at a) and b) above. Calculate (for the original SoFP):- Current ratio 2) i) ii) Acid test ratio

Jesse Ltd SoFP at 31/12/2024 £'000 Buildings £'000 1,800 Equipment 2,100 £1NV Shares 975 Inventory 450 Reserves Cash & Receivables 150 10% Loan Stock 600 400 Assets 1,075 Payables 3,775 Equity & Liabilities 3,775 Assume Jesse could purchase new plant at the start of the year (01/01/2024) on the following terms:- a) b) Required: 1) Buy new plant from a 2:9 rights issue made at a premium of 50p per share. Plant value is £600,000 with a life of 6 years. Or, instead, lease the new plant over 6 years with interest at 20% & annual repayments of £180,000 paid in arrears. Prepare amended balance sheets at 31/12/2024 for each option at a) and b) above. Calculate (for the original SoFP):- Current ratio 2) i) ii) Acid test ratio

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 21SP: Begin with the partial model in the file Ch02 P21 Build a Model.xlsx on the textbooks Web site. a....
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Jesse Ltd SoFP at 31/12/2024 £'000 Buildings £'000 1,800 Equipment 2,100 £1NV Shares 975 Inventory 450 Reserves Cash & Receivables 150 10% Loan Stock 600 400 Assets 1,075 Payables 3,775 Equity & Liabilities 3,775 Assume Jesse could purchase new plant at the start of the year (01/01/2024) on the following terms:- a) b) Required: 1) Buy new plant from a 2:9 rights issue made at a premium of 50p per share. Plant value is £600,000 with a life of 6 years. Or, instead, lease the new plant over 6 years with interest at 20% & annual repayments of £180,000 paid in arrears. Prepare amended balance sheets at 31/12/2024 for each option at a) and b) above. Calculate (for the original SoFP):- Current ratio 2) i) ii) Acid test ratio
Transcribed Image Text:Jesse Ltd SoFP at 31/12/2024 £'000 Buildings £'000 1,800 Equipment 2,100 £1NV Shares 975 Inventory 450 Reserves Cash & Receivables 150 10% Loan Stock 600 400 Assets 1,075 Payables 3,775 Equity & Liabilities 3,775 Assume Jesse could purchase new plant at the start of the year (01/01/2024) on the following terms:- a) b) Required: 1) Buy new plant from a 2:9 rights issue made at a premium of 50p per share. Plant value is £600,000 with a life of 6 years. Or, instead, lease the new plant over 6 years with interest at 20% & annual repayments of £180,000 paid in arrears. Prepare amended balance sheets at 31/12/2024 for each option at a) and b) above. Calculate (for the original SoFP):- Current ratio 2) i) ii) Acid test ratio
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