(a)[7]
Calculate the revised profit for the year after applying the necessary changes for matters 1 to 5.
(b)[5]
Calculate, to two decimal places, the difference between the price/earnings ratio the directors worked out and the price/earnings ratio from the published financial statements.
(c)[4]
Advise the directors whether they ought to worry about the movement in the price/earnings ratio. Justify your answer.
(d)[6]
Explain three measures the company could adopt that would make the gearing ratio fall.
(e)[3]
State three other motives for a limited company preparing a statement of profit or loss.