You are theCFO of Blooming Retailing Ltd, whichcurrently has the following information available fro the financial year of 2019-2020:

Item

($)

Accounts payable

34,000

Current Assets

123,000

Revenue

256,000

Wages & Salaries

56,000

Fixed assets

357,000

Short term loans

40,000

Mortgage

120,000

Costs of sales

122,000

Selling expenses

23,000

Interest expenses

15,000

Required:

a.What is the time value of money, please briefly explain the basic principle of finance and provide a real-life example where the principles applies. (1 mark)

ANSWER:(box will enlarge as you type)

b.Calculate operating profit of the company and build the income statement for the company in this accounting period, given the company tax rate of 30%? (3 marks)

ANSWER:

c.How much is net working capital of the company? (1 mark)

ANSWER:

d.Calculate the Return on Equity of the company? (1 mark)

ANSWER:

e.What is the EPS of the company if total number of ordinary share outstanding of the companies is 4,000? (1 mark)