Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Consult Source B in the insert.
(a)[5]

Draw up the statement of changes in equity for the year ended 31 December 2024. A total column must be shown.

(b)[2]

Calculate, to two decimal places, the return on capital employed for the year 2024.

(c(i))[2]

Calculate, to two decimal places, the gearing ratio for both the years 2023 and 2024.

(c(ii))[4]

Comment on the gearing ratio using the calculations in (c)(i).

(d(i))[3]

Calculate the proposed final dividend per share for 2024.

(d(ii))[4]

Explain why the directors want to raise the dividend cover for 2024.

(e)[5]

Comment on the company’s 2024 price/earnings (PE) ratio compared with the company’s PE ratio in 2023. Support your answer with calculations.

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