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ACC303 ASSIGNMENT

The document contains financial statements for Garuba PLC for the year ended December 31, 2013, including a statement of profit or loss and a comparative statement of financial position. It also includes additional information for preparing statements of cash flows and a summary of final accounts for Omo Agege Ltd for the years 2013 and 2014, along with required calculations of various financial ratios. The document emphasizes the importance of compliance with accounting standards and provides a basis for financial analysis.

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9 views3 pages

ACC303 ASSIGNMENT

The document contains financial statements for Garuba PLC for the year ended December 31, 2013, including a statement of profit or loss and a comparative statement of financial position. It also includes additional information for preparing statements of cash flows and a summary of final accounts for Omo Agege Ltd for the years 2013 and 2014, along with required calculations of various financial ratios. The document emphasizes the importance of compliance with accounting standards and provides a basis for financial analysis.

Uploaded by

federalx2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Matriculation Number: ………………………………………………..

CODE: HACC 303 TITLE: INTERMEDIATE FINANCIAL ACCOUNTING I

ASSIGNMENT
QUESTION ONE

GARUBA PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR


THE YEAR ENDED 31 DECEMBER 2013

DESCRIPTION N’000 N’000


Revenue 1,600,000
Interest income 10,000
Gain on sale of plant 8,000
1,618,000
Expense:
Cost of Sales 960,000
Wages and salaries expenses 240,000
Depreciation on plant and equipment 50,000
Interest expense 8,000
Other expenses 152,000 (1,410,000)
Profit before tax 208,000
Income tax expense (60,000)
Profit for the year 148,000
Other comprehensive income:
Gain on available for sale investment 4,000
Income tax (1,200) 2,800
Total comprehensive income for the year 150,800

Comparative Statement of Financial Position as at:

31 Dec. 2013 31 Dec. 2012 Increase/


(Decrease)
N’000 N’000 N’000

Cash at bank 113,100 120,000 (6,900)

Accounts receivable 158,000 140,000 18,000

Inventory 140,000 130,000 10,000

Prepayments 19,000 16,000 3,000

Interest receivable 200 300 (100)

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Matriculation Number: ………………………………………………..

Plant and equipment 330,000 300,000 30,000

Investment (Available for sale) 28,000 24,000 4,000

Intangible assets 30,000 30,000

818,300 730,300 88,000

Accounts payable 90,000 84,000 6,000

Wages and Salaries payable 10,000 8,000 2,000

Accrued interests 400 400

Other expenses payable 3,600 6,000 (2,400)

Current tax payable 32,000 28,000 4,000

Deferred tax liability 17,200 10,000 7,200

Long-term borrowings 140,000 12,000 20,000

Share capital 400,000 400,000

Retained earnings 122,300 74,300 48,000

Available for sale reserve 2,800 2,800

818,300 730,300 88,000

Additional information extracted from the company’s records are:

(i) Plant which had a carrying amount of N20,000,000 was sold for N28,000,000 cash
and new equipment was purchased for N100million.
(ii) Intangibles valued at N30,000,000 were acquired for cash.
(iii) Borrowing of N20,000,000 were made during the year and received in cash.
(iv) Dividends paid in cash amounted to N100,000,000

Required:
Prepared Statements of Cash Flows for GARUBAI PLC for the year ended 31 December 2013 in
accordance with IAS7 using direct method.

QUESTION TWO

The summarized final accounts of OMO AGEGE Ltd, manufacturer of Aluminum roofing sheets
and its accessories for two years ended December 31, 2013 and 2014 were as follows:

THE PENALTY FOR EXAMINATION MALPRACTICE IS DISMISAL Page 2


Matriculation Number: ………………………………………………..

Operating results

2014 2013
N’000 N’000 N’000 N’000
Revenue 3,364,720 2,750,355
Profit before interest and 117,060 104,410
taxation
Interest payable 12,500 12,500
Taxation 52,530 43,735
Dividend 18,750 17,500
Statement of financial position:

Non-current Assets 81,110 34,705


Current Assets:
Inventories & W.I.P 311,470 260,980
Receivable & prepayment 274,295 250,260
Cash and bank balances 36,170 72,825
621,935 584,065
Current Liabilities:
Payables and accruals 268,545 241,770
Net current Assets 353,390 342,295
434,500 377,000
Financed by:
62,500,000 ordinary shares of N1 62,500 62,500
each
Retained earnings 179,370 148,935
Shareholder’s funds 241,870 211,435
10% Loan notes (2020-2032) 125,000 125,000
Deferred taxation 67,630 40,565
434,500 377,000
The shares of the company were quoted at N1.20 at December 31, 2013 and December 31, 2014.

Required

a. Calculate the following:


i. Current ratio
ii. Quick ratio
iii. Return on capital employed
iv. Return on Assets
v. Earnings per share (EPS)
vi. Dividend cover
b. Comment briefly on the changes between the ratios arrived at in 2013 and 2014.

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