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Building Beginning inventory Mortgage bond Advertising Inventory Ordinary shares Sales Interest expense Interest received Fuel Long-term business loan Stationery Retained earnings Electricity and water Purchases Depreciation Ending inventory Accounts receivable Maintenance Telephone Cash Salaries and wages Insurance Vehicles CL Accounts payable 5,400,000 300,000 3,600,000 -420,000 900,000 1,350,000 4,500,000 210,000 13,000 78,000 1,500,000 15,600 1,400,000 191,000 -2,250,000 160,000 900,000 1,800,000 65,000 35,500 168,000 900,000 88,000 -380,000 798,000 Now, using the given set of figures, draw up a balance sheet and income statement for the 3.6 Some potential investors have approached you for your insight on the company. The directors have explained to you that the share capital is made up of 135,000 shares issued at R10 each 3.6.1 What is the earnings per share figure? (Max. 5 lines) Start writing here: 3.6.2 The investors have said that their primary criterion for buying shares in a business is the earnings yield on offer. They have a target earnings yield of 15% and have been offered Vuvuwasha shares at R25 a share. Based solely on the year's financials that you have seen, would you recommend that they buy the shares? (Max. 8 lines) Start writing here

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