1 Amos Ltd has operated as a private limited company for 80 years. The company is facing increased competition and it has been decided to sell the business as a going concern.

The financial situation is as shown on the balance sheet:

Required Prepare valuations per share of Amos Ltd using:
(i) Book value basis (ii) Adjusted book value

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Balance Sheet as at 30 June 1999 Fixed assets Premises Equipment Investments Current assets Stock Debtors Bank 500,000 125,000 50,000 675,000 85,000 120,000 25,000 230,000 Creditors: amounts due within one year Trade creditors Dividends (65,000) (85,000) (150,000) Net current assets 80,000 Total assets less current liabilities 755,000 Creditors: amounts due after one year Secured loan stock (85,000) Net assets 670,000 Financed by Ordinary shares (50p par value) 500,000 Reserves 55,000 Profit and loss account 115,000 Shareholders' funds 670,000 The current market values of the fixed assets are estimated as: Premises 780,000 Equipment 50,000 Investments 90,000 Only 90 per cent of the debtors are thought likely to pay.