In the fulfillment of the course

“FINANCIAL MANAGMENT”

BBA morning program

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Name
 FINAL EXAMINATION 2021
ANSWER 01
A) FORMULA OF EPS:
EPS = (Net profit after tax – preferred dividend) ÷ (average outstanding share)

To find EPS first we have to find net profit after tax:

Net profit after tax = Net profit before tax × (1- tax rate)
 218000 × (1- 40%)
 218000× 0.6
 Net profit after tax = 130800.

EPS = (130800 – 32000) ÷ (85000)

EPS = 1.162 answer.

B) FORMULA OF RETAINED EARNING:

Retained Earnings = Net profit after tax – Preferred dividends – Common stock dividends.

Equity dividend = number of shares × dividend per share

= 85000 × 0.80
= 68000.

RETAINED EARININGS = 130800 – 32000 – 68000

= 30800 answer.
ANSWER 02

ASSETS LIABILITIES + OWNEREQUITY

CURRENT ASSETS LIABILITIES

Cash 215,000 Account payable 220,000

A/c receivable 450,000 Accruals 55,000
Inventories 375,000 Long term debt 420,000
Marketable securities 75,000 Notes payable 475,000

Current Assets 1115000 TOTAL LIABILITIES 1170,000

FIXED ASSETS OWNERS EQUITY

Equipment 140,000 Preferred stock 100,000
Building 225,000 Capital 360,000
Furniture and fixtures 170,000 Retained earnings 210,000
Land 100,000 Common stock 90,000
Machinery 420,000
Vehicles 25,000

Fixed Assets 1080000 Total O.E 760,000

Accumulated depreciation (265,000)

Fixed assets 815,000

TOTAL ASSESTS 1930000 LIABILITY + O.E 1930000