(a) The current cost Balance Sheet of a company contained the following figures:Current AssetsBank and cash (not included in monetary working capital)450Current LiabilitiesCreditors (Hire purchase)170Taxation210Proposed dividendsBank overdraft (not included in monetary working capital)Net Assets employed2501903,5402,680Shareholders' FundsLong-term LoansDebentures540Deferred LiabilitiesDeferred taxation320Required : Calculate the current cost gearing proportion.(b) The facts are exactly the same as (a) above and the current cost adjustments were :DepreciationFixed asset disposals870801,050320Cost of salesMonetary working capitalRequired : Calculate the current cost gearing adjustment.

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(a) The current cost Balance Sheet of a company contained the following figures: Current Assets Bank and cash (not included in monetary working capital) 450 Current Liabilities Creditors (Hire purchase) Taxation 170 210 Proposed dividends Bank overdraft (not included in monetary working capital) Net Assets employed Shareholders' Funds 250 190 3,540 2,680 Long-term Loans Debentures 540 Deferred Liabilities Deferred taxation 320 Required : Calculate the current cost gearing proportion. (b) The facts are exactly the same as (a) above and the current cost adjustments were : Depreciation Fixed asset disposals 870 80 1,050 320 Cost of sales Monetary working capital Required : Calculate the current cost gearing adjustment.

(a) The current cost Balance Sheet of a company contained the following figures: Current Assets Bank and cash (not included in monetary working capital) 450 Current Liabilities Creditors (Hire purchase) Taxation 170 210 Proposed dividends Bank overdraft (not included in monetary working capital) Net Assets employed Shareholders' Funds 250 190 3,540 2,680 Long-term Loans Debentures 540 Deferred Liabilities Deferred taxation 320 Required : Calculate the current cost gearing proportion. (b) The facts are exactly the same as (a) above and the current cost adjustments were : Depreciation Fixed asset disposals 870 80 1,050 320 Cost of sales Monetary working capital Required : Calculate the current cost gearing adjustment.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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