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I need the answer as soon as possible Question 6 The Balance Sheet of D Ltd. on 31st March, 2017 is as under: Liabilities Assets
I need the answer as soon as possible
Question 6 The Balance Sheet of D Ltd. on 31st March, 2017 is as under: Liabilities Assets 1,25,000 shares of 100 Goodwill 10,00,000 each fully paid up 1,25,00,000 Building 80,00,000 Bank overdraft 46,50,000 Machinery 70,00,000 Trade Payables 52,75,000 Inventory 80,00,000 Provision for taxation 12,75,000 Trade receivables (all 50,00.000 Profit and loss account 53.00.000 considered good) 2.90,00.000 290.00.000 In 2000, when the company started its activities the paid up capital was the same. The Profit/Loss for the last five years is as follows: 2012-2013: Loss (13,75,000), 2013-2014: Profit 324,55,000, 2014-2015: Profit 29,25,000, 2015-2016: Profit 36,25,000, 2016-2017: Profit 2 42,50,000. Income tax rate so far has been 40% and the above profits have been arrived at on the basis of such tax rate. From 2016-2017, the rate of income tax should be taken at 45% 10% dividend in 2013-2014, 2014-2015 and 15% dividend in 2015-2016 and 2016-2017 has been paid. Market price of this share on 31 March, 2017 is 125. With effect from 1 April, 2017, the Managing Directors remuneration will be 20,00,000 instead of 15,00,000. The company has secured a contract from which it can earn an additional 10,00,000 per annum for the next five years. Calculate the value of goodwill at 3 years purchase of super profit. (For calculation of future maintainable profits weighted average is to be taken)Step by Step Solution
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