Question

Using the financial statements below,please calculate thefollowing

The current position of each company,

The market value of each company,

The amount of profit generated by each dollar ofassets or equity,

How much debt is involved in each company compared to equity,and

How solvent each business is.

THE PEOPLES’ CREDIT UNION LIMITED

Financial statements for THE PEOPLES’ CREDIT UNION LIMITD) forthe year ended December 31, 2017.

Each share costs $5.00

The dividend paid was 3.75%

	December 31, 2017
Cash Resources:
Cash in hand and at bank	11,961,005
Short-term investments	71,000,511
Total cash resources	82,691,516
Other Assets:
Accounts receivable and prepayments	2,738,666
Net loans to members	343,075,646
Long-term investments	71,513,400
Fixed assets	29,202,515
Total Assets	529,221,743
Liabilities:
Accounts payable and accruals	7,800,932
Members’ deposit savings	34,623,468
Members’ time deposits (fixed deposits)	90,629,600
Provision for terminal benefits	5,303,180
Retirement benefit obligations	638,200
Members’ share savings	324,230,903
Total liabilities	463,226,283
Institutional Capital:
Reserve fund	22,992,421
Education fund	1,446,107
Loan protection fund	836,726
Building fund	12,250,000
Investment re-measurement reserve	15,266,397
Undivided earnings	13,203,809
Total institutional capital	65,995,460
Total Liabilities and Institutional Capital	529,221,743

	For the year ended December 31 2017
Income:
Interest on loans	37,358,266
Investment income (net)	2,020,571
Other income	1,262,899
Total Income	40,671,736
Expenditure:
Administrative expenses	7,956,429
Board and committees’ expenses	1,072,631
Life saving insurance	866,002
Loan protection expense	1,716,236
Loan loss expense	129,286
Interest on members’ expense	2,170,128
Members education, training and development expenses	1,636,889
Personnel costs	10,635,898
Total expenditure	26,183,499
Net surplus for the year	14,458,237
Other comprehensive income
Items that may be re-classified later as profit or loss
Unrealised (loss)/gain on available-for-sale financialassets	974,380
Items that may be re-classified later as profit or loss
Net actuarial (loss)/gain on retirement benefit obligations	(294,500)
	679,880
Total Comprehensive Income for the year	15,138,117

	Reserve fund	Education fund	Loan protection fund	Building fund	Investment re-measurement fund	Undivided earnings
Balance as at January 1, 2017	21,523,987	1,170,891	711,676	11,500,000	14,292,017	11,819,316
Total comprehensive income for the year					974,380	14,163,737
Appropriation of net surplus for the year:
10 % to the Reserve Fund	1,416,374					(1,416,374)
13.5% to the Education Fund		1,912,105				(1,912,105)
13% to the Loan Protection Fund			1,841,286			(1,841,286)
	22,940,361	3,082,996	2,552,962	11,500,000	15,266,397	20,813,288
Add/(less) adjustments as follows:
Dividends (2016)						(10,160,544)
Entrance fees	52,060					(52,060)
Member education, training and development expenses		(1,636,889)				1,636,889
Transfer to Building Fund				750,000		(750,000)
Loan protection expense			(1,716,236)			1,716,236
Balance as at December 31, 2017	22,992,421	1,446,107	836,726	12,250,000	15,266,397	13,203,809