Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are Professional Accountant ( SA ) for registered accountants. A client of yours in the SME sector is speculating shares on listed company on
You are Professional Accountant SA for registered accountants. A client of yours in the SME sector is speculating shares on listed company on the JSE. The detail and name of the listed company is confidential at this stage and this is the information that you have been provided with
The company was founded some years ago and operates as a chain of specialist stores selling stationery, clothing and crockery and home ware on credit.
From January to present date, the shares have doubled in price and the market in general appears to be most impressed with the performance of the economy.
The growth in the share price has been accompanied by growth in the number of stores that have been opened or acquired through the take over of SMEs operating in the same market.
Extracts from the annual financial statements of the are as follows:
Statement of Financial Position at December
R
EQUITY AND LIABILITIES
Issued share capital
Retained Income
Equity attributable to ordinary shares
Current Liabilities
Creditors
Shareholders for dividends
Bank Overdraft
TOTAL EQUITY AND LIABILITIES
ASSETS
NonCurrent Assets
Property, Plant and Equipment
Current Assets
Inventory
Trade and other receivables
Cash and bank balances
TOTAL ASSETS
table
table
Statement of Profit and Loss and Other Comprehensive Income for the years ended December
table
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started