At the year ending on31stdecember 2006 the company had the

Reference no: EM13615232

During its accountingyear ending on December 31, 2007 the Zeal Pak Company hadthe cash sales Rs.280,000, the cost of goods sold Rs. 145,000 and the operatingexpenses of Rs. 50,000. Thecompany paid the Rs. 5,000 interest on debentures and tax @ 35%.The company furtherreported that the debtors on January 01, 2007 was Rs. 110,000,cash received from debtorduring the year Rs.60,000 and the debtor at December31st2007 was Rs.270,000.

At the year ending on31stDecember, 2006 the company had the netProfit after tax Rs. 155,000 and 20,000ordinary shares in issue. On January 1, 2007, Zeal Pak Co.issued 10% preference sharesof Rs. 150,000. On June 30, 2007 it proposed to make a 1 for5 rights issue at aprice of Rs. 4 per share. The market value of existing shares onJune 30, 2007, before the issueis made, was Rs. 6.

You arerequired to:

a) Prepare the Incomestatement for the year ending on 31st December 2007.

b) Profit availablefor distribution to the ordinary share holder at the year endingon 31st December 2007.

c) Calculate theoretical ex-rights price

d) Identify the bonus element in rights issue

e) Calculate the weighted average number of shares in the year 2006 and2007.

f) Earning per share for the year2007 and its corresponding figure for 2006.

Reference no: EM13615232

Questions Cloud

Activity-based costing is just another inventory valuation : activity-based costing is just another inventory valuation method. it isnt relevant for making operating decisions. do

What is the distinction between equivalent units under the : what is the distinction between equivalent units under the fifomethod and equivalent units under the weighted-average

Why do most companies use normal or standard costing after : why do most companies use normal or standard costing? after all actual costing gives the actual cost so the firm could

At the initial stageof the project there were idle funds of : aftab company limitedrealized itself as a social responsible company and decidedto construct an employeeshousing

At the year ending on31stdecember 2006 the company had the : during its accountingyear ending on december 31 2007 the zeal pak company hadthe cash sales rs.280000 the cost of goods

Typical household currents are on the order of a few : typical household currents are on the order of a few amperes. if a 1.54a current flows through the leads of an

A busy restaurant determined that between 630 pm and 900 pm : a busy restaurant determined that between 630 p.m. and 900 p.m. on friday nights the arrivals of customers are poisson

Can hydrophobic interactions be rigorously treated as : can hydrophobic interactions be rigorously treated as additive newtonian forces? explain why in terms of n-body

What is the current passing between the electrodes express : current passes through a solution of sodium chloride. in 1.00 second 2.68 x 1016 na ions arrive at the negative

User Account

All Pages