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Advise the directors which option they should choose. Justify your choice by discussing the advantages and disadvantages of each option. Turn over
See it on the paper →Advise the directors which option they should choose. Justify your choice by discussing the advantages and disadvantages of each option. Turn over
See it on the paper →Complete the statement of changes in equity for the year ended 31 December 2024. At 31 December 2024 General reserve $ Retained earnings $ 65 000 28 000 105 000 Total $ At 1 January 2024 Share premium $ 700 000 Workings: Share capital $ R Limited Statement of changes in equity for the year ended 31 December 2024 Additi...
See it on the paper →statement of profit or loss
See it on the paper →balance c/d.
See it on the paper →ordinary share capital (i)
See it on the paper →statement of profit or loss. (ii) Additional information Depreciation of delivery vehicles for the year amounted to $16 100. After this had been provided, an impairment review of delivery vehicles was undertaken on 31 December 2024. This showed the following: value in use $ potential sales value $ estimated selling cos...
See it on the paper →Complete the following table to show the recoverable amount and any impairment loss for each vehicle. carrying amount $ Vehicle A 16 800 Vehicle B 24 100 Vehicle C 22 800 recoverable amount $ impairment loss $ Additional information Other information for the year ended 31 December 2024 was as follows: Revenue Decrease...
See it on the paper →Prepare the statement of profit or loss for the year ended 31 December 2024 in accordance with IAS 1. Workings: Additional information One of the directors has suggested that in the coming year the company should pay a dividend.
See it on the paper →Explain why a statement of cash flows usually starts with profit.
See it on the paper →Discuss whether the external auditors of a company would be interested in the ratios of a business.
See it on the paper →dividend per share in 2024
See it on the paper →dividend cover in 2024
See it on the paper →gearing at 31 December 2024. Additional information The directors believed that if the company invested $220 000 in new non-current assets on 1 January 2025 then the profit from operations would increase by 15%. They had considered two options for raising the necessary funds. Option 1 To take out a long-term bank loan...
See it on the paper →Calculate, to two decimal places, the dividend cover in 2025 and the gearing ratio at 31 December 2025 for each option. Option 1 Option 2 Dividend cover Gearing ratio Workings: Additional information The directors decided to implement Option 1.
See it on the paper →Prepare the statement of changes in equity for the year ended 31 December 2024. Share capital $ Share premium $ Balances at 1 January 2024 Revaluation reserve $ Retained earnings $ 95 000 112 700 H Limited Statement of changes in equity for the year ended 31 December 2024 Total $ Share issue Dividends paid Revaluation...
See it on the paper →Advise the directors which option they should choose. Justify your answer by discussing both the advantages and disadvantages of each option.
See it on the paper →Calculate, to two decimal places, the return on capital employed for the year 2024.
See it on the paper →Calculate, to two decimal places, the gearing ratio for both the years 2023 and 2024.
See it on the paper →Comment on the gearing ratio with reference to the calculations in (c)(i). Additional information The 2023 interim dividend was $0.05 per share. TN plc had a dividend cover of 1.8 times in 2023. In considering the proposed 2024 final dividend, the directors suggest that the dividend cover for 2024 should be increased t...
See it on the paper →Candidates were required to prepare a statement of changes in equity from given data. The most common errors were with how to process a reduction in the valuation of land, and how to show details within the statement. Many candidates used incorrect narratives in the detail column, providing dates instead of the correct narratives (bonus issue, rights issue, final dividend, etc.) and many candidate...
— Examiner report, October/November 2023, 9706/21 Q2(b) (Cambridge)
Candidates were required to discuss two options relating to the raising of finance. The majority of candidates were able to demonstrate their knowledge of both options and provide an appropriate conclusion.
— Examiner report, October/November 2023, 9706/21 Q2(c) (Cambridge)
Required candidates to advise the directors whether they should raise additional finance by making a rights issue of shares or by the issue of a further debenture. This was well attempted by most candidates with good points raised for both options and most then offered valid advice based on their own comments.
— Examiner report, October/November 2023, 9706/23 Q1(c) (Cambridge)
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