THE INSTITUTE OF CHARTERED ACCOUNTANTS ... - Resourcedat
THE INSTITUTE OF CHARTERED ACCOUNTANTS ... - Resourcedat
THE INSTITUTE OF CHARTERED ACCOUNTANTS ... - Resourcedat
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PATHFINDER<br />
assets<br />
Current Assets:<br />
Inventory 310,000,000 280,000,000<br />
Accounts 340,000,000 790,000,000<br />
receivable<br />
Bank 100,000,000 750,000,000 90,000,000 1,160,000,000<br />
Total Assets 2,280,000,000 1,980,000,000<br />
Current<br />
Liabilities<br />
Trade accounts 470,000,000 600,000,000<br />
payable<br />
Others 260,000,000 250,000,000<br />
730,000,000 850,000,000<br />
Non-current<br />
Liabilities<br />
Loan notes 440,000,000 140,000,000<br />
Total Liabilities 1,170,000,000 990,000,000<br />
Net Assets 1,110,000,000 990,000,000<br />
Equities<br />
attributable to<br />
the owners of<br />
the business<br />
Share capital 900,000,000<br />
880,000,000<br />
Retained Profits 210,000,000 110,000,000<br />
1,110,000,000 990,000,000<br />
You are required to prepare a report to the board of Alpha Plc assessing the financial<br />
performance and position of the two companies. Your report should be prepared in the<br />
context of Alpha Plc’s interests in these two companies and should be illustrated with<br />
the following accounting ratios:<br />
(a)<br />
Return on capital employed<br />
PR<strong>OF</strong>ESSIONAL EXAMINATION I - MAY 2012<br />
27
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