Calculate the weighted average number of shares

Reference no: EM13258316

During its accountingyear ending on December 31, 2007 the Zeal Pak Company had the cash sales Rs.280,000, the cost of goods sold Rs. 145,000 and the operating expenses 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 December 31st 2007 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 ending on 31st December 2007.

c) Calculate theoretical ex-rights price

d) Identify the bonuselement in rights issue

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

f) Earning per sharefor the year 2007 and its corresponding figure for 2006.

Reference no: EM13258316

Questions Cloud

What is the rate at which thermal energy is appearing : A coil with an inductance of 16.8 H and a resistance of 5.5 ? is suddenly connected to a resistanceless battery with an ? = 194.0 V. What is the rate at which thermal energy is appearing

Calculate the amount of bad debt expense recorded : Based on the above information, calculate the amount of bad debt expense recorded by Betty.

Convert the result back to hexadecimal : Add the following 16’s complement hexadecimal numbers 4F09 D3A5 Is your result positive or negative? How do you know? Convert each number to binary and add the binary numbers. Convert the result back to hexadecimal. Is the result the same?

Find the correct contact lens prescription : A farsighted man uses eyeglasses with a refractive power of 1.90 diopters. Wearing the glasses 0.03 m from his eyes, What is the correct contact lens prescription, in diopters

Calculate the weighted average number of shares : Calculate the weighted average number of shares in the year 2006 and2007. Earning per sharefor the year 2007 and its corresponding figure for 2006.

Magnitude of operating leverage for donuts unlimited : At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by:

Discretionary and non-discretionary cost : What is the difference between discretionary and non-discretionary cost?

What is the angular frequency of rotation : A conducting wire formed in the shape of a right triangle with base b = 38 cm and height h = 63 cm, What is the angular frequency of rotation

Results in a concentrated product : An alcohol solution contains 6% ethanol by mass. This solution is fed to a distillation process which results in a concentrated product (90% ethanol by mass) and an "ethanol free" product (0.005% ethanol by mass).

User Account

All Pages