EDUTRAY

  • Home
  • About Us
  • Quick Purchase
  • Testimonials
  • Contact Us
$0.00 Cart
  • Login
  • Home
  • About Us
  • Quick Purchase
  • Testimonials
  • Contact Us
  • Free Sample

Audit and Assurance Study Videos – 50% OFF – Promo Code : 50FIFTY – Quick Purchase

PFM 1 – 2

Question 01 (Jay Co)
Question 01 (Jay Co)

0%
0 votes, 0 avg

  • Please read all instructions. When you are finished click ‘Next’ to move to the next screen.

Answering Questions

  • Read each question carefully.
  • When you answer a question, your answer will automatically be saved.
  • You can revisit questions and change your answers at any time during the exam.
  • The only permitted characters for numerical answers are:
    • Numbers
    • One full stop as a decimal point if required
    • One minus symbol at the front of the figure if the answer is negative.

              For example: -10234.35

No other characters, including commas, are accepted.

Navigating between questions

  • Click Next Button to move to the next question.
  • Click Previous Button to move back to the previous question.
  • Click on a question number from the Exam Progress Details panel (see next page) to move directly to that question.
  • A message will be displayed when you click to move away from a question which has been partially attempted. You can choose to stay on the question and review your answer(s) or continue.
  • When reviewing your answer(s) for partially attempted questions ensure you read any message displayed in red text below the question in Section A or below the question
    part(s) in Section B
    .
  • Note: Where a message is displayed, the answer(s) provided will not be marked.

1 / 5

JAY Co

The following scenario relates to questions 21–25.

Summary financial information for JAY Co is given below, covering the last two years.

STATEMENT OF PROFIT OR LOSS (EXTRACT) 20X8 20X7
  $’000 $’000
Revenue 74,521 68,000
Cost of sales 28,256 25,772
Salaries and wages 20,027 19,562
Other costs 11,489 9,160
Profit before interest and tax 14,749 13,506
Interest 1,553 1,863
Tax 4,347 3,726
Profit after interest and tax 8,849 7,917
Dividends payable 4,800 3,100

 

STATEMENT OF FINANCIAL POSITION (EXTRACT) 20X8 20X7
  $’000 $’000
 Shareholders’ funds 39,900 35,087
Long-term debt 14,000 17,500
  53,900 52,587

 

Other information
Number of shares in issue (‘000)                                                                   14,000                 14,000
P/E ratio (average for year)
JAY Co                                                                                                            14.0                    13.0
Industry                                                                                                            15.2                    15.0
Shareholders’ investment
EPS                                                                                                                 $0.63                   $0.57
Share price                                                                                                      $8.82                   $7.41
Dividend per share                                                                                          $0.34                   $0.22
 

 

21. What is the total shareholder return?

2 / 5

22. What is the percentage increase in return on capital (ROCE) for JAY Co between 20X7 and 20X8 (to one decimal place)?

3 / 5

23. Accounting profits may not be the best measure of a company’s performance. Which of the following statements support this theory?

  1. Profits are affected by accounting policies.
  2. Profits take no account of risk.
  3. Profits take no account of the level of investment made during the year.
  4. Profits are measures of short-term historic performance.

4 / 5

24. What is the operating profit margin for 20X8 (to one decimal place)?

5 / 5

25. As well as the information above, the following extra data is available:

20X8              20X7

Gearing (debt/equity)                             35.1%            49.9%

Interest cover (PBIT/interest)                  9.5                  7.2

Inflation                                                    3%                  3%

Based on all of the information available, are the following statements true or false?

  1. Employees may be unhappy with their wages in 20X8.
  2. Financial risk for shareholders appears to be a problem area.

Your score is

0%

Please rate this quiz

Quick Links

  • Home
  • About Us
  • Quick Purchase
  • Testimonials
  • Contact Us
  • Terms and Conditions

Connect With Us

Facebook Youtube Instagram
Guaranteed Safe Checkout

Contact Us

  • [email protected]

Quick Links

  • Home
  • About Us
  • Quick Purchase
  • Testimonials
  • Contact Us
  • Terms and Conditions

Contact Us

  • [email protected]

Connect With Us

Facebook Youtube Instagram
Guaranteed Safe Checkout

All Rights Reserved | EDUTRAY © 2022

Home
Account
0
Cart
Free Sample
  • Login
  • Sign Up
Forgot Password?
Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.
0
    0
    Your Cart
    Your cart is empty, try adding something to the cart and purchase.Return to Shop
    Continue Shopping