Reference no: EM133069514

Questions -

Q1. Caramel Company showed the following balances in its balance sheet as at year-end:

Current Assets Php 450,000

Non-current Assets 1,150,000

Current Liabilities 300,000

Non-current Liabilities 900,000

Weighted average of outstanding shares 120,000 shares

According to the appraisal, 60% of the non-current assets can be replaced at 150% of their reported book value while the remaining balance of the non-current assets has replacement value of 65%. Reported balance of other items approximates their replacement value. How much is the replacement value of Caramel Company at year end?

a. Php584,000

b. Php400,000

c. Php1,784,000

d. Php1,600,000

Q2. Refer to Caramel Company. What is the book value per share of Caramel Company?

a. Php3.33

b. Php4.87

c. Php13.33

d. Php14.87

Q3. Samsan Company, a start-up company which developed its own data imaging algorithm, is trying to estimate the value of their company. Their latest financial statements showed the following information:

Current Assets 1,250,000

Non-current Assets 4,000,000

Current Liabilities 850,000

Non-current Liabilities 250,000

Part of their non-current assets is a patent for the technology they developed which has a recorded balance of P2,500,000. An equity investor is looking at buying the company. Samsan Company tried to trace back the costs of developing the patent and determined that the reproduction cost of that particular patent is at P3,000,000. What is the book value of Samsan Company?

a. Php5,250,000

b. Php5,000,000

c. Php4,150,000

d. Php4,000,000

Q4. Refer to Samsan Company. What is the reproduction value of Samsan Company?

a. Php5,000,000

b. Php4,650,000

c. Php4,150,000

d. Php4,000,000