Question 1: (30 points) Below are the financial statements of "UCy is the best Ltd": Required: Answer the following questions (3 points each) 1: Compute the company's Operating profit for 20X3. Income statement for year ended 31 December. 2. How much did the company pay in Dividends in 20X3? 3. How much did the company sell part of equipment for in 20X3? Sales Cost of Sales Gross Profit 20X3 280000 -150200 129800 4. What was the amount of Goodwill purchased during the year? 5a. What is the annual interest rate charged by the bank given that the company pays the loan with one annual instalment on Jan. 3 of every year? -104300 -2500 -2000 -4500 5b. What is the annual instalment paid on the loan? Selling and Administrative expenses Depreciation Expense - Equipment Goodwill impairment Interest expense Gain on the disposal of PPE Accounts Receivable impairment expense Taxes Net Income 6. The company issued new shares in X3. What was the issue price? 4100 -800 -700 19100 7. The company purchased more of its shares back in X3. What was the stock price at which the shares were bought back? 8a. If the company's credit sales amounted to 240.000, how much did the company receive from debtors during 20x3? 8b: What is the total amount that clients owe the company? What is the amount that the company expects to collect? Balance sheet at 31.12.X3 31.12.X2 Cash Debtors Allowance for the impairment of Accounts Receivable Inventory Prepayments Equipment- Book Value Goodwill Total Assets 14000 45500 -2500 85000 6000 255000 38000 441000 21800 54200 -2000 67000 4000 268000 20000 433000 Question 2: points each, total 20 points) The country is a small island that is struggling to contain corruption and misleading information. In an attempt to battle this culture the government initiated a number of new rules and within this context ordered the country's Stock Exchange Commission to re- evaluate the adequacy of its local accounting standards and other regulations that pertain to the functioning of the stock market. The SEC asked for interested parties to submit their proposals with respect to changes they deem would significantly enhance the functioning of the stock market and increase the quality of financial reporting in the country. The following suggestions were made by the local Institute of Certified Accountants (ICA). You have been hired as a consultant for SEC to give your expert opinion on the proposed changes. Would you recommend these changes and why? 58000 119000 50000 63000 150000 40000 Accounts Payable Long term loan share capital (par value $2 per share) Share premium Treasury stock (total of 1100 and 600 shares in X3 and X2. respectively) Retained Earnings Total Liabilities and Owners' equity 78600 44500 -Obuv -4500 a. According to ICA, the most widely used standards in the world, IFRS, allow the development expenditures of R&D to be capitalized. ICA believes that this will allow investors to get important information about the research prospects of the 144000 441000 140000 433000 firm 1 2