Questions and Answers of Financial Accounting For Decision Makers

Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2017 and 2018 are as follows:Dividends were paid on ordinary shares of
Broadbury Ltd is a family-owned clothes manufacturer. For a number of years the chairman and managing director was David Broadbury. During his period of office, sales revenue had grown steadily at a
The financial statements for Harridges Ltd are given below for the two years ended 30 June 2017 and 2018. Harridges Limited operates a department store in the centre of a small town.Dividends were
For the current year, the average settlement period for trade receivables at Arkle plc was 60 days. This figure is much higher than in previous years. What factors may have contributed to this change
At the close of share trading on 19 February 2018, investment ratios for Next plc, the UK fashion and textiles retailer, and the averages for the ‘general retailers’ section, were as
Why might a business prefer not to have its Z-score made public?
Delta plc is a listed business in the ‘general retailers’ section of the market. Its most recent income statement and statement of financial position are outlined as follows:A dividend totalling
Ali plc and Bhaskar plc both operate electrical stores throughout the UK. The financial statements of each business for the year ended 30 June 2018 are as follows:Ali plc paid a dividend of £135
Real World 9.3 shows that the average dividend yield for businesses in electricity supply is nearly four times that of businesses in the industrial engineering sector. Why might this be the case?
SeaSwift plc builds luxury yachts for the international market. The most recently published income statement and statement of financial position are set out below. Since the business builds the
Genesis Ltd was incorporated three years ago and has grown rapidly since then. The rapid rate of growth has created problems for the business, which the directors have found difficult to deal with.
As with many businesses, Marks and Spencer plc (M&S), the retailer, has identified a number of key performance indicators (KPIs). Typical of such businesses, M&S publishes the results for
Why is the amount for ‘non-controlling interests’ recalculated each time we prepare a statement of financial position, but ‘goodwill arising on consolidation’ is calculated just once?
There are two different approaches to calculating goodwill arising on consolidation. What factors might influence a particular company to choose one basis rather than another?
Segmental information relating to Dali plc for the year to 31 December 2018 is shown below:Required:Analyse the performance of each of the three main business segments for the year and comment on
Segmental information relating to Turner plc for the year to 30 April 2018 is shown below:Required:Analyse the performance of each of the three main business segments for the year and comment on your
An associate company is one over which the investing company has sufficient shares to enable it to exercise significant influence, but not control. Sufficient shares, in this context, is defined as
Assume that you have been asked by the chair of a large listed business to prepare a report highlighting the main areas to be used as a basis for evaluating the performance of the chief executive.
What are the benefits of separating the roles of chair and chief executive? Should such a separation be made compulsory?
A large listed business has become the target of a shareholder activist. What steps should the board of directors take in response to this event?

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