Trial Balance | Amount ($000) | Amount ($000) |
Revenue | 2,45,000.00 | |
Cost of sales | 1,45,300.00 | |
Distribution Cost | 16,750.00 | |
Adminstrative Expenses | 18,400.00 | |
Dividends paid | 5,440.00 | |
Bank Intererst | 450.00 | |
Loan | 1,250.00 | |
leased Property | 50,000.00 | |
Plant and equipment | 77,750.00 | |
Depreciation | ||
Leased property | 12,500.00 | |
Equipment | 21,750.00 | |
Inventory | 30,500.00 | |
Trade Receivables | 31,500.00 | |
Trade Payables | 16,100.00 | |
Bank | 2,250.00 | |
Share Capital | 40,500.00 | |
Retained earnings | 13,540.00 | |
5% convertible loan | 25,000.00 | |
Income tax | 1,600.00 | |
Deferred Tax | 2,300.00 | |
Total | 3,78,940.00 | 3,78,940.00 |
i. Revenue includes an amount of $10 million for cash sales made through Ocean’s retail outlets during the year on behalf of Outdoor Extreme. Ocean, acting as agent, is entitled to a commission of 15% of the selling price of these goods. By 31 March 2017, Ocean had remitted to Outdoor Extreme $7.5 million (of the $10 million sales) and recorded this amount in cost of sales.
1,500.00
ii. Plant and equipment is depreciated at 10% per annum on the reducing balance basis. All amortization / depreciation of non-current assets is charged to cost of sales.
37,500.00,56,000.00
iii. The balance on income tax represents the under/over provision of the tax liability for the year ended 31 March 2016. A provision of $14 million is required for tax for the year ended 31 March 2017 and at this date the deferred tax liability was assessed at $4·15 million.
iv. The weighted average of number of shares during financial year ended 31 March 2017 is 105 million.
Income Statement Amount | |
Revenue | 2,45,000.00 |
less: Cost of sales | 1,47,150.00 |
Gross Profit | 97,850.00 |
Add: Commission Received | 1,500.00 |
less: Distribution Cost | 16,750.00 |
Less: adminstrative expenses | 18,400.00 |
PBIT | 64,200.00 |
Less: Loan note interest | 1,250.00 |
Less: Bank Interest | 450.00 |
Net Profit | 62,500.00 |
Statement of Changes in Equity | |
Share Capital | 40,500.00 |
Retained Earnings (Opening Balance) | 13,540.00 |
Net profit | 62,500.00 |
Less: Dividend paid | 5,440.00 |
Less: Provision for Tax | 14,000.00 |
Total Equity (31-March-18) | 97,100.00 |
Statement of Financial Position | |
Current assets | |
Bank | 250.00 |
Inventory | 30,500.00 |
Trade receivables | 31,500.00 |
Total Current Assets | 62,000.00 |
Fixed Assets | |
Leasehold Property | 50,000.00 |
less: Accumulated Depreciation | 16,250.00 |
Equipments | 77,750.00 |
Less: Accumulated depreciation | 25,350.00 |
Total Fixed Assets | 86,150.00 |
Total Assets | 1,48,150.00 |
Current Liablities | |
Trade Payables | 8,600.00 |
Long term Liablities | 25,000.00 |
Provision for Tax | 14,000.00 |
Deferred tax Liablity | 1,850.00 |
Total liablities | 49,450.00 |
Owner’s Equity | |
Common Stock | 40,500.00 |
Retained Earnings | 58,200.00 |
Total Liablities and owner’s Equity | 1,48,150.00 |
Calculation of EPS | |
Revenue | 2,45,000.00 |
less: Cost of sales | 1,47,150.00 |
Gross Profit | 97,850.00 |
Add: Commission Received | 1,500.00 |
less: Distribution Cost | 16,750.00 |
Less: adminstrative expenses | 18,400.00 |
PBIT | 64,200.00 |
Less: Loan note interest | 1,250.00 |
Less: Bank Interest | 450.00 |
Net Profit | 62,500.00 |
Less: Dividend | 5,440.00 |
EAES | 57,060.00 |
÷No. of shares outstanding | 105000 |
EPS | 0.54 |
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