ACCT 490 Saudi Electronic to PQR Company and XYZ Principles of Accounting Questions Assignment Question(s):(20 Marks) Q1. a) Name the stock exchange marke

ACCT 490 Saudi Electronic to PQR Company and XYZ Principles of Accounting Questions Assignment Question(s):(20 Marks)

Q1. a) Name the stock exchange market in Riyadh, KSA and explain its operating activities. (2Marks)

b) Read the figure below and answer the questions given :

Which section of the balance sheet is the figure about?
What do you understand by par value and excess of par value? Explain.
What is the difference between shares authorized and shares issued and outstanding?

Q2. The following information is related to PQR company and XYZ company for the year 2013:

PQR Company

XYZ Company

Cash dividend declared and paid during the year

$750,000

$124,800

Common stock

$25,000,000

$12,000,000

Number of shares of common stock outstanding

50,000

24,000

Par value of a share

$50

$50

Market value of a share

$60

$52

Both the companies belong to same industry. PQR is an old and well-established company where as XYZ is a new company. The historical data shows that the PQR has a stable annual dividend distribution to stockholders.

Required:

Calculate dividend yield ratio of both the companies. Which company would you recommend for investment in shares? Explain with reasons.

Q3 Corporations must disclose their financial reports to their stakeholders which should be publish in annual reports of the corporation. Download an annual report of any corporation in KSA and study the Cash flow statement prepared by them to answer the following questions:

Explain in detail how the cash flow statement was prepared by the corporation.
Calculate the corporations cashflow on total asset ratio and explain how this ration can help the management.

2.Which method was used to prepare the statement? Explain the other method that can be used to prepare cash flow statement, with numerical examples.

Q4. Why does the management of any companies analyze financial statements? Explain by using the different tools in analyzing financial statement with proper numerical example. College of Administrative and Financial Sciences
Assignment 4
Course Name: Principles of Accounting
Student’s Name:
Course Code: ACCT490
Student’s ID Number:
Term: Summer
CRN:
Academic Year: 2019/2020 (1440/1441 H)
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of Level of Marks: High/Middle/Low
20
Instructions:
1. This assignment is an individual assignment.
2. All students are encouraged to use their own words.
3. Student must apply Saudi Electronic University academic writing standards and
APA style guidelines.
4. Support your submission with course material concepts, principles, and theories
from the textbook along with at least two scholarly, peer-reviewed journal articles.
5. A mark of zero will be given for any submission that includes copying from other
resource without referencing it.
6. It is strongly encouraged that you submit your assignment into the safe assignment
Originality Check prior to submitting it to your instructor for grading.
7. The Answer should be within 1500-2500 words in length
Assignment Question(s):
(20 Marks)
Q1. a) Name the stock exchange market in Riyadh, KSA and explain its operating activities. (2Marks)
b) Read the figure below and answer the questions given :
i.
ii.
iii.
Which section of the balance sheet is the figure about?
What do you understand by par value and excess of par value? Explain.
What is the difference between shares authorized and shares issued and outstanding?
Q2. The following information is related to PQR company and XYZ company for the year 2013:
PQR
XYZ
Company
Company
Cash dividend declared and paid during the year $750,000
$124,800
Common stock
$25,000,000 $12,000,000
Number of shares of common stock outstanding
50,000
24,000
Par value of a share
$50
$50
Market value of a share
$60
$52
Both the companies belong to same industry. PQR is an old and well-established company where
as XYZ is a new company. The historical data shows that the PQR has a stable annual dividend
distribution to stockholders.
Required:
Calculate dividend yield ratio of both the companies. Which company would you recommend for
investment in shares? Explain with reasons.
Q3 Corporations must disclose their financial reports to their stakeholders which should be publish in
annual reports of the corporation. Download an annual report of any corporation in KSA and study
the Cash flow statement prepared by them to answer the following questions:
1. Explain in detail how the cash flow statement was prepared by the corporation.
2.Which method was used to prepare the statement? Explain the other method that can be used to
prepare cash flow statement, with numerical examples.
3. Calculate the corporations cashflow on total asset ratio and explain how this ration can help the
management.
Q4. Why does the management of any companies analyze financial statements? Explain by using the
different tools in analyzing financial statement with proper numerical example.

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