Q2 Great World Lid statement of financial position as at 31 Dec: 2020 2019 Sm Sm Operating cash 120 100 Accounts payable Financial assets 1100 1000 Operating liabilities Accounts receivable 1880 1580 Long term loans Inventory 1820 1680 Plant & equipment 5680 5420 Share capital 10600 970 2020 2019 Sm 2400 2080 780 900 3680 3940 3740 2860 10600 9780 Great World Ltd statement of shareholders' equity 1 Jan 2020 Shares issued Repurchased 24m shares Dividends paid Invalid gain in financial site Net income 31 Dec 2020 Sm 2860 1644 (1440) (360) 100 3740 Great World Led reported for the year 2020 Sm Interest income 30 Interest expense 196 Sales 7452 The company tax rate is 35% Required: For Great World Ltd (a) Prepare a reformulated statement of financial position for 2019 and 2020 and a reformulated statement of shareholders' equity for year ended 2020. (6 marks) (b) Prepare a reformulated statement of comprehensive income for 2020. (4 marks) (c) Compute FCF (Free Cash Flow) for 2020 (2 marks) (d) Compute the OPM (Operating Profit Margin), ATO (Asset Tumover Ratio) and RNOA (Return on Net Operating Assets) for 2020 using opening figures for the denominators. (3 marks) (e) Compute ROCE (Retum on Common Equity) and its first level break- down for 2020 (5 marks) (1) The implicit cost for short term NBC is 3% after tax. Compute for 2020 the ROOA (Return on Operating Assets) and OLLEV (Operating Liability Leverage) and its determination of RNOA (Retum on Net Operating Assets) (5 marks) Q2 Great World Lid statement of financial position as at 31 Dec: 2020 2019 Sm Sm Operating cash 120 100 Accounts payable Financial assets 1100 1000 Operating liabilities Accounts receivable 1880 1580 Long term loans Inventory 1820 1680 Plant & equipment 5680 5420 Share capital 10600 970 2020 2019 Sm 2400 2080 780 900 3680 3940 3740 2860 10600 9780 Great World Ltd statement of shareholders' equity 1 Jan 2020 Shares issued Repurchased 24m shares Dividends paid Invalid gain in financial site Net income 31 Dec 2020 Sm 2860 1644 (1440) (360) 100 3740 Great World Led reported for the year 2020 Sm Interest income 30 Interest expense 196 Sales 7452 The company tax rate is 35% Required: For Great World Ltd (a) Prepare a reformulated statement of financial position for 2019 and 2020 and a reformulated statement of shareholders' equity for year ended 2020. (6 marks) (b) Prepare a reformulated statement of comprehensive income for 2020. (4 marks) (c) Compute FCF (Free Cash Flow) for 2020 (2 marks) (d) Compute the OPM (Operating Profit Margin), ATO (Asset Tumover Ratio) and RNOA (Return on Net Operating Assets) for 2020 using opening figures for the denominators. (3 marks) (e) Compute ROCE (Retum on Common Equity) and its first level break- down for 2020 (5 marks) (1) The implicit cost for short term NBC is 3% after tax. Compute for 2020 the ROOA (Return on Operating Assets) and OLLEV (Operating Liability Leverage) and its determination of RNOA (Retum on Net Operating Assets)
