Mr. Jensen Bemba is an investor from the Caribbean Islands. He came to Uganda after listening to the President’s address to Ugandans in the diaspora living in the United States of America. During the address, the President invited Ugandans and any other interested persons to come and enjoy the conducive investment environment in Uganda. Mr. Bemba picked interest and wants to invest in the manufacturing industry. However, he is at crossroads on whether to start his own company or to partner with existing companies. In addition, is apprehensive about the cost of capital, the financial capability and going concern of the existing companies in Uganda. Mr. Bemba has contacted Uganda Investment Authority (UIA) to assist him with information about potential companies that he can partner with. UIA has identified two companies; Abacus Industries Limited (Abacus) and Benet Holdings Limited (Benet). He intends to choose one depending on its liquidity, solvency and profitability. Mr. Bemba has identified you as a financial expert to analyse the performance of the two companies and advise on the better option. Additionally, Mr. Bemba also wants to know the cost of capital in Uganda. Some information about the two companies and industrial ratios has been obtained and their summarized financial statements for the year ended 31 December, 2018 are as follows: Statements of comprehensive income for the year ended Abacus Benet Shs ‘million’ Shs ‘million’ Sales 20,000 30,000 Cost of sales (7,000) (15,000) Gross profit 13,000 15,000 Other expenses (2,000) (5,000) Administrative expenses (1,000) (2,000) Profit before interest and tax 10,000 8,000 Interest (1,000) (1,200) Profit after interest before tax 9,000 6,800 Tax (at 30%) (2,700) (2,040) Profit after tax 6,300 4,760 Statement of financial position as at 31 December: Abacus Benet Shs ‘million’ Shs ‘million’ Non-cur
Answers
Solution
Rational Number : A rational number is a fractional number which is in the form of a p/q , where q is ≠ 0.
Some examples are 2/5,3/6,7/8 , 2/3, 2/9 and so on.
Here , see the denominator 5,6,8,9 &3 all are >0
=>Rational number can be further converted into decimal form e.g., 1/2= 0.5
Learn more:
TypesReal Numbers ( real numbers includes all the integers )Natural NumbersWhole Numbers
Standard form of Rational Number:
Rational number having fractional values with no common factor between dividend and divisor and Divisor be positive.
e.g., 12/36= 2/6= 1/3
Mr. Jensen Bemba is an investor from the Caribbean Islands. He came to Uganda after listening to the President’s address to Ugandans in the diaspora living in the United States of America. During the address, the President invited Ugandans and any other interested persons to come and enjoy the conducive investment environment in Uganda. Mr. Bemba picked interest and wants to invest in the manufacturing industry. However, he is at crossroads on whether to start his own company or to partner with existing companies. In addition, is apprehensive about the cost of capital, the financial capability and going concern of the existing companies in Uganda. Mr. Bemba has contacted Uganda Investment Authority (UIA) to assist him with information about potential companies that he can partner with. UIA has identified two companies; Abacus Industries Limited (Abacus) and Benet Holdings Limited (Benet). He intends to choose one depending on its liquidity, solvency and profitability. Mr. Bemba has identified you as a financial expert to analyse the performance of the two companies and advise on the better option. Additionally, Mr. Bemba also wants to know the cost of capital in Uganda. Some information about the two companies and industrial ratios has been obtained and their summarized financial statements for the year ended 31 December, 2018 are as follows: Statements of comprehensive income for the year ended Abacus Benet Shs ‘million’ Shs ‘million’ Sales 20,000 30,000 Cost of sales (7,000) (15,000) Gross profit 13,000 15,000 Other expenses (2,000) (5,000) Administrative expenses (1,000) (2,000) Profit before interest and tax 10,000 8,000 Interest (1,000) (1,200) Profit after interest before tax 9,000 6,800 Tax (at 30%) (2,700) (2,040) Profit after tax 6,300 4,760 Statement of financial position as at 31 December: Abacus Benet Shs ‘million’ Shs ‘million’ Non-cur
Answer:
Explanation:
Rational Number : A rational number is a fractional number which is in the form of a p/q , where q is ≠ 0.
Some examples are 2/5,3/6,7/8 , 2/3, 2/9 and so on.
Here , see the denominator 5,6,8,9 &3 all are >0
=>Rational number can be further converted into decimal form e.g., 1/2= 0.5
Learn more:
TypesReal Numbers ( real numbers includes all the integers )Natural NumbersWhole Numbers
Standard form of Rational Number:
Rational number having fractional values with no common factor between dividend and divisor and Divisor be positive.
e.g., 12/36= 2/6= 1/3
Mr. Jensen Bemba is an investor from the Caribbean Islands. He came to Uganda after listening to the President’s address to Ugandans in the diaspora living in the United States of America. During the address, the President invited Ugandans and any other interested persons to come and enjoy the conducive investment environment in Uganda. Mr. Bemba picked interest and wants to invest in the manufacturing industry. However, he is at crossroads on whether to start his own company or to partner with existing companies. In addition, is apprehensive about the cost of capital, the financial capability and going concern of the existing companies in Uganda. Mr. Bemba has contacted Uganda Investment Authority (UIA) to assist him with information about potential companies that he can partner with. UIA has identified two companies; Abacus Industries Limited (Abacus) and Benet Holdings Limited (Benet). He intends to choose one depending on its liquidity, solvency and profitability. Mr. Bemba has identified you as a financial expert to analyse the performance of the two companies and advise on the better option. Additionally, Mr. Bemba also wants to know the cost of capital in Uganda. Some information about the two companies and industrial ratios has been obtained and their summarized financial statements for the year ended 31 December, 2018 are as follows: Statements of comprehensive income for the year ended Abacus Benet Shs ‘million’ Shs ‘million’ Sales 20,000 30,000 Cost of sales (7,000) (15,000) Gross profit 13,000 15,000 Other expenses (2,000) (5,000) Administrative expenses (1,000) (2,000) Profit before interest and tax 10,000 8,000 Interest (1,000) (1,200) Profit after interest before tax 9,000 6,800 Tax (at 30%) (2,700) (2,040) Profit after tax 6,300 4,760 Statement of financial position as at 31 December: Abacus Benet Shs ‘million’ Shs ‘million’ Non-cur