Temptation Food Products Ltd is an established processed foods company specialising in latestpackaged and branded foods. The following particulars about its capital structure and otherparameters are given to you.Paid up equity share capital(shares of Rs. 10 each)Free Reserves of the company6% Convertible Preference Shares (Rs. 100 eachconvertible into two equity shares in the next 2years)Total Long Term Debt in the companyRetained Earnings (excluding current year)Current Year PATProposed dividendTrading P/EAmount Rs.350,000,0006,800,000,000850,000,0006,000,000,000Rs. 780,000,000Rs. 225,000,000209652From the above given facts of the case, answer the following questions.What is the networth of the company considering preference capital and current year retained earnings aspart of it?

Let's take a closer look at each financial metric:1. Cash Flow: A key financial indicator, cash flow…

Answered: Temptation Food Products Ltd is an…

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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2. Following in the Balance Sheet of Navrang Co. Ltd., as on 31st December 2020. Share Capital: 3000 5% pref. shares of *100 each 6000 Equity shares of 100 each 6% Debentures Bank Overdraft Creditors Goodwill Land & Buildings 3,00,000 Machinery 22,500 3,00,000 4,50,000 Stock 65,000 6,00,000 Debtors 70,000 1,50,000 Cash 7,500 1,50,000 Profit and Loss Account 75,000 Preliminary expenses 3,50,000 10,000 1275000 1275000 On the above date the company adopted the following scheme of reconstruction. i) The preference shares are to be reduced to fully paid shares of *75 each and equity shares are to be reduced to shares of 40 each fully paid. ii) The Debenture holders took over stock and debtors in full satisfaction of their claims. iii) The fictitious assets are to be eliminated. iv) The land and buildings to be appreciated by 40% and machinery to be depreciated by 30%. Give Journal entries incorporating the above scheme of reconstruction and prepare the reconstructed balance sheet. 20 was as…
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Equity method journal entries (price equals book value) Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor purchases 14,400 common shares of an investee at $16 per share; the shares represent 25% ownership in the investee and the investor concludes that it can exert significant influence over the investee. b. The investee reports net income of $172,800. c. The investor receives a cash dividend of $1.50 per common share from the investee. d. The investor sells all 14,400 common shares of the investee for $260,280. General Journal Ref. Description Debit Credit a. b. C. d. Equity investment
Can you show me step by step how you got the number of outstanding shares and the total paid in capital
Newly formed S&J Iron Corporation has 143,000 shares of $7 par common stock authorized. On March 1, Year 1, S&J Iron issued 12,000 shares of the stock for $10 per share. On May 2, the company issued an additional 23,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par. d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet? Complete this question by entering your answers in the tabs below. Req A…
Blossom SA reported the following balances at December 31, 2019: share capital-ordinary €530,000, share premium-ordinary €115,000, and retained earnings €310,000. During 2020, the following transactions affected equity. 1. Issued preference shares with a par value of €140,000 for €247,000. 2. Purchased treasury shares (ordinary) for €45,000. Earned net income of €174,000. Declared and paid cash dividends of €52,000 3. 4. Prepare the equity section of Blossom SA's December 31, 2020, statement of financial position.
Assessing Financial Statement Effects of Marketable Equity Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities. a. Purchased 14,000 common shares of Heller Co. at $16 cash per share. b. Received a cash dividend of $1.25 per common share from Heller. c. Year-end market price of Heller common stock is $17.50 per share. d. Sold all 14,000 common shares of Heller for $220,920 cash. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. tion N/A N/A N/A N/A Cash Asset (224,000) 17,500 + 220,920 * N/A ◆ * N/A 0 N/A * N/A Noncash Assets 224,000 = = 21,000 * N/A 0✓ = ♦ = N/A * N/A (171,500) * = * N/A Balance Sheet Liabilities 0 0✔ 0 0 4 + > N/A N/A N/A N/A Contrib. Capital 0 0✔ 0…
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Capital structure of PT. PNA now is: 2. Debt IDR 2.000.000.000,- IDR 3,000,000,000,- Preference shares. Ordinary shares IDR 5,000,000,000 Fees for each funding, debt 6%, Preferred stock 6%, Commont stock 10% and tax 50%. The amount of profit for ordinary shareholders that is currently Rp. 2,000,000,000 and 50% will be paid as dividends, and the rest will be withheld. The company will use the retained earnings as additional capital with the assumption that the capital composition and average are maintained its cost of capital. From the data above calculate: A. Weighted cost of capital B. Additional total capital so that the composition of new capital remains constant C. Calculate the new capital structure
Omega company has the following capital structure as at 31st December 2020: Ordinary share (600,000 shares) Sh. 15,000,000 Retained Earnings 9,000,000 10% bonds 3,000,000 8% preference shares (300,000) 3,000,000 Total 30,000,000 The company has just paid a dividend of sh. 2 per share and its expected growth rate is 10% forever. The current market price of the share is sh. 20. The current market price of preferred shares is sh. 8. The company intends to venture into a lucrative business opportunity from next year which will require financing worth sh. 120M. The company expects to earn a net income of sh. 100M of which 10% will be paid out as dividend. The company will require a new issue of ordinary shares…
Current Attempt in Progress Following is a list of investments owned by Kingbird Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation Date Jan. 15, 2024 No. Shares Cost 1,300 $8.15 2,500 4,100 On January 15, 2024, Kingbird sold the shares in CTN Corporation for $7.14 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) FV-OCI Investments 7.26 6.23 Cash Account Titles and Explanation Unrealized Gain or Loss - OCI Fair Value $7.14 7.14 6.90 (To record adjustment to current fair value.) Retained Earnings FV-OCI Investments (To record the sale of shares.) Accumulated Other…

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