A4 You are provided with the following information about the retained earnings of Global Sales plc:

Retained earnings at 31 December 2019 3,310 million

Dividends paid during 2019 1,350 million

Retained earnings at 31 December 2018 2,830 million

What is the comprehensive income of Global Sales plc for the year to 31 December 2019

Is it:

1. 7,490 million
2. 870 million
3. 4,180 million
4. 1,830 million

In answering questions A5 to A8 please refer to the following summary income statement and selected Statement of financial position information of James Price plc.

	000's
Summary income statement for year to 30 June 2020
Gross profit	3,800
Operating profit	2,400
Profit before taxation	2,340
Profit for the period	1,755
	s
Selected statement of financial position information as at 30 June 2020
Total Non-current assets	4,100
Inventories	1,300
Total Current assets	2,450
Total Current liabilities	970
5 Year Debentures	480
Net Assets	5,100
Ordinary shares of 1 nominal value each	4,000
Retained profits	1,100

A5 The return on shareholders' equity is:

1. 45.9%.
2. 43.9 %.
3. 34.4%.
4. 36.6%.

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A6 The debt/equity ratio (gearing) is:

1. 9.4%.
2. 1,062.5%.
3. 19.0%.
4. 28.4%.

A7 The earnings per share figure is:

1. 2.28.
2. 0.59.
3. 0.23.
4. 0.44.

A8 The acid test is:

1. 1.2:1.
2. 0.4:1.
3. 1.3:1.
4. 0.1:1.