Question 3 Answer all parts of this question. (a) You are given the following information in relation to Percussion Ltd: 29,250,000 10% 675,000 Sales Gross profit margin General expenses Tax Number of shares issued at start of the period Number of shares issued at full market price of 190 per share for cash, half way through the period 450,000 400,000 320,000 Required: (0) Calculate the price earnings ratio and the earnings per share for Percussion Ltd. () If a company has a high price earnings ratio, what might this indicate about the company? How might the price earnings ratio change if a company increased its gearing? Your answer to this part of the question should not be more than 100 words. (8 marks) (b) Discuss 5 differences between merger accounting and acquisition accounting and the reasons why merger accounting is no longer in use. Your answer to this part of the question should not be more than 150 words. (5 marks) (c) The board of Purple Plc have taken the decision to restructure the business and close one of Purple Plc's factories. The impact of this will be material for Purple Plc. A detailed plan is being prepared and will be implemented in the following year. No detailed announcements of the plan have been made by the end of the financial year. Purple Plc must train its staff in changes to health and safety regulation which occurred at the end of the financial year. Required: (0) What are events after the balance sheet date and how should they be accounted for? () How would the decision to restructure be accounted for by Purple Plc? () Would the company need to make a provision for the future training costs? Your answer to this question should not be more than 200 words. (7 marks)