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Tuli Ltd's Statement of Financial Position for 2023 and 2022 financial years are presented below: Assets Non-current Assets Inventory Receivables Cash Equity and Liabilities Share Capital (R2 shares) Share Premium Retained Income Long term Debt Payables 2023 5 000 000 600 000 300 000 300 000 6 200 000 2023 2 400 000 600 000 550 000 2 000 000 650 000 6 200 000 Additional information: 1. Shares are currently trading at R3.20 per share. Replacement cost of assets is R6 000 000. 2. Dividends Retained Income Sales (75% on credit) Cost of sales (all purchases on credit) Depreciation Interest expense Tax (30%) Net Income after tax 2 2022 2 000 000 850 000 80 000 90 000 160 000 300 000 150 000 150 000 4 700 000 700 000 320 000 100 000 5 820 000 Their abbreviated Statement of Comprehensive Income for the year ended 2023 is presented below: 2022 2 200 000 200 000 400 000 2 100 000 920 000 5 820 000

Tuli Ltd's Statement of Financial Position for 2023 and 2022 financial years are presented below: Assets Non-current Assets Inventory Receivables Cash Equity and Liabilities Share Capital (R2 shares) Share Premium Retained Income Long term Debt Payables 2023 5 000 000 600 000 300 000 300 000 6 200 000 2023 2 400 000 600 000 550 000 2 000 000 650 000 6 200 000 Additional information: 1. Shares are currently trading at R3.20 per share. Replacement cost of assets is R6 000 000. 2. Dividends Retained Income Sales (75% on credit) Cost of sales (all purchases on credit) Depreciation Interest expense Tax (30%) Net Income after tax 2 2022 2 000 000 850 000 80 000 90 000 160 000 300 000 150 000 150 000 4 700 000 700 000 320 000 100 000 5 820 000 Their abbreviated Statement of Comprehensive Income for the year ended 2023 is presented below: 2022 2 200 000 200 000 400 000 2 100 000 920 000 5 820 000

FINANCIAL ACCOUNTING
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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3.1 Calculate the current ratio for 2023 and comment. (The ratio for 2022 was 1.22:1) (4)

3.2 Calculate the debtors’ collection period for the current year. Note: Debtors terms: 60 days net. The ratio for 2022 was 66 days. (4)

3.3 Calculate the following ratios for 2023:

3.3.1 Earnings per share (4)

3.3.2 Dividends per share. Would shareholders be happy with this dividend? Explain. (4)

3.4 Calculate the Market to Book Ratio and explain the relevance of this ratio to decision makers. (4)

3.5 Calculate the Price Earnings ratio for 2023 and explain the significance of this ratio. (5)

 

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Tuli Ltd's Statement of Financial Position for 2023 and 2022 financial years are presented below: Assets Non-current Assets Inventory Receivables Cash Equity and Liabilities Share Capital (R2 shares) Share Premium Retained Income Long term Debt Payables 2023 5 000 000 600 000 300 000 300 000 6 200 000 Additional information: 1. Shares are currently trading at R3.20 per share. Replacement cost of assets is R6 000 000. 2. 2023 2 400 000 600 000 550 000 2 000 000 650 000 6 200 000 Interest expense Tax (30%) Net Income after tax Sales (75% on credit) Cost of sales (all purchases on credit) Depreciation Dividends Retained Income 2 Their abbreviated Statement of Comprehensive Income for the year ended 2023 is presented below: 2 000 000 850 000 80 000 90 000 2022 4 700 000 700 000 320 000 100 000 5 820 000 160 000 300 000 150 000 150 000 2022 2 200 000 200 000 400 000 2 100 000 920 000 5 820 000
Transcribed Image Text:Tuli Ltd's Statement of Financial Position for 2023 and 2022 financial years are presented below: Assets Non-current Assets Inventory Receivables Cash Equity and Liabilities Share Capital (R2 shares) Share Premium Retained Income Long term Debt Payables 2023 5 000 000 600 000 300 000 300 000 6 200 000 Additional information: 1. Shares are currently trading at R3.20 per share. Replacement cost of assets is R6 000 000. 2. 2023 2 400 000 600 000 550 000 2 000 000 650 000 6 200 000 Interest expense Tax (30%) Net Income after tax Sales (75% on credit) Cost of sales (all purchases on credit) Depreciation Dividends Retained Income 2 Their abbreviated Statement of Comprehensive Income for the year ended 2023 is presented below: 2 000 000 850 000 80 000 90 000 2022 4 700 000 700 000 320 000 100 000 5 820 000 160 000 300 000 150 000 150 000 2022 2 200 000 200 000 400 000 2 100 000 920 000 5 820 000
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