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MNO'S ROCE was 15%. If company gearing was 20%, and net assets were £150,000, calculate shareholder funds. A) 105,000 120,000 125,000 135,000 PQR's plant, costing £80,000, was damaged in its 6th year of business use. Plant life is 10 years. Engineers reckon residual plant life to be 3 years with value-in-use of £30,000. The plant could be scrapped now for £10,000. Calculate the asset impairment. A) 25,000 B) ABGD 20,000 C) 15,000 10,000 STU acquired 40% of VWX for £250,000. The latter's profits in the year after the takeover were £60,000. Calculate the investment in VWX to be disclosed in STU's group accounts. A) 250,000 ABOD B) 274,000 C) 280,000 D) 310,000 YZA's quick asset ratio is half the current ratio. Current assets excluding inventory were £60,000. Calculate the inventory amount in current assets. A) 25,000 ABOD B) C) 30,000 45,000 60,000 HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000 from £340,000 at the time. Goodwill arising was £24,000, and leverage in KLM was 25%. Calculate the investment in KLM in HIJ's books. A) B) ABCD 298,000 316,000 392,000 436,000

MNO'S ROCE was 15%. If company gearing was 20%, and net assets were £150,000, calculate shareholder funds. A) 105,000 120,000 125,000 135,000 PQR's plant, costing £80,000, was damaged in its 6th year of business use. Plant life is 10 years. Engineers reckon residual plant life to be 3 years with value-in-use of £30,000. The plant could be scrapped now for £10,000. Calculate the asset impairment. A) 25,000 B) ABGD 20,000 C) 15,000 10,000 STU acquired 40% of VWX for £250,000. The latter's profits in the year after the takeover were £60,000. Calculate the investment in VWX to be disclosed in STU's group accounts. A) 250,000 ABOD B) 274,000 C) 280,000 D) 310,000 YZA's quick asset ratio is half the current ratio. Current assets excluding inventory were £60,000. Calculate the inventory amount in current assets. A) 25,000 ABOD B) C) 30,000 45,000 60,000 HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000 from £340,000 at the time. Goodwill arising was £24,000, and leverage in KLM was 25%. Calculate the investment in KLM in HIJ's books. A) B) ABCD 298,000 316,000 392,000 436,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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MNO'S ROCE was 15%. If company gearing was 20%, and net assets were £150,000, calculate shareholder funds. A) 105,000 120,000 125,000 135,000 PQR's plant, costing £80,000, was damaged in its 6th year of business use. Plant life is 10 years. Engineers reckon residual plant life to be 3 years with value-in-use of £30,000. The plant could be scrapped now for £10,000. Calculate the asset impairment. A) 25,000 B) ABGD 20,000 C) 15,000 10,000 STU acquired 40% of VWX for £250,000. The latter's profits in the year after the takeover were £60,000. Calculate the investment in VWX to be disclosed in STU's group accounts. A) 250,000 ABOD B) 274,000 C) 280,000 D) 310,000 YZA's quick asset ratio is half the current ratio. Current assets excluding inventory were £60,000. Calculate the inventory amount in current assets. A) 25,000 ABOD B) C) 30,000 45,000 60,000 HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000 from £340,000 at the time. Goodwill arising was £24,000, and leverage in KLM was 25%. Calculate the investment in KLM in HIJ's books. A) B) ABCD 298,000 316,000 392,000 436,000
Transcribed Image Text:MNO'S ROCE was 15%. If company gearing was 20%, and net assets were £150,000, calculate shareholder funds. A) 105,000 120,000 125,000 135,000 PQR's plant, costing £80,000, was damaged in its 6th year of business use. Plant life is 10 years. Engineers reckon residual plant life to be 3 years with value-in-use of £30,000. The plant could be scrapped now for £10,000. Calculate the asset impairment. A) 25,000 B) ABGD 20,000 C) 15,000 10,000 STU acquired 40% of VWX for £250,000. The latter's profits in the year after the takeover were £60,000. Calculate the investment in VWX to be disclosed in STU's group accounts. A) 250,000 ABOD B) 274,000 C) 280,000 D) 310,000 YZA's quick asset ratio is half the current ratio. Current assets excluding inventory were £60,000. Calculate the inventory amount in current assets. A) 25,000 ABOD B) C) 30,000 45,000 60,000 HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000 from £340,000 at the time. Goodwill arising was £24,000, and leverage in KLM was 25%. Calculate the investment in KLM in HIJ's books. A) B) ABCD 298,000 316,000 392,000 436,000
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