The extract balance sheet of a company showed the following:20202021Debentures 10%Share capital £1 each£400,000£500,000£750,000 £1,250,000During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares.In addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinaryshares of £1 each was made at a premium of £0.50 per share.The cash flow from financing activities is:Select one answer:O £200,000O £500,000O £400,000O £300,000

Solution:- Cash flow from financing activity means flow of cash from sources of capital; either…

The extract balance sheet of a company showed the following: 2020 2021 Debentures 10% £500,000 £400,000 Share capital £1 each £750,000 £1,250,000 During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares n addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinary shares of £1 each was made at a premium of £0.50 per share The cash flow from financing activities is Gelect one answer: O £200,000 O £500,000 D £400,000 D £300,000

The extract balance sheet of a company showed the following: 2020 2021 Debentures 10% £500,000 £400,000 Share capital £1 each £750,000 £1,250,000 During the year to 31 December 2021, £100,000 10% debentures were converted to £100,000 ordinary shares n addition, the company made a bonus issue of shares of £200,000. Finally, a new issue of 200,000 ordinary shares of £1 each was made at a premium of £0.50 per share The cash flow from financing activities is Gelect one answer: O £200,000 O £500,000 D £400,000 D £300,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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XYZ plc had an issued share capital of 1 million ordinary shares at 1 January 2020. The nominal value was 50p and the market value £2 per share. On 30 June 2020, the company offered a 1:2 rights issue (e.g., one new share for every two shares held) at a price of 100p per share. The post-tax earnings were £3m and £4m for 2019 and 2020, respectively. Required: a) Calculate the basic EPS for XYZ plc 31 December 2020, in accordance with best accounting practice. b) What is the bonus element for shareholders?
The financial position as at 31st December, 2019 was as follows: EQUITY AND LIABILITIES GH¢ GH¢ Stated capital: Ordinary share [40,000 at GHC12.50 each] 500,000 Preference shares [20,000 at GHC8.00 each] 160,000 660,000 Long term capital 140,000 800,000 NON-CURRENT ASSETS Building and Land 400,000 Equipment 182,000 Motor Vehicles 48,000 630,000 CURRENT ASSETS Inventory 40,000 Accounts Receivables 20,000 Cash at bank 124,000 184,000 CURRENT LIABILITIES Accounts payable (14,000) 170,000 TOTAL ASSETS 800,000 The Company has produced the following estimates: 1) The accounts payable figure of GH¢14,000 stated in the financial statement would be paid in January, 2020. The following credit purchases are settled a month after the month of purchase, after deducting two percent (2%) discount. GH¢ January 28,000 February 42,000 March 36,000 April 45,000 May 41,000 June 37,000 2) Sales for January will be GH¢51,300 and will increase at the rate of 20% per month until March. In April, sales…
The balance below have been extracted from the accounting records at 31 December 2020: 1) Prepayment on building insurance 80,000 2) Retained profits 1 Jan 2020 2,058,000 Ordinary shares of £1 each 4,500,000 Share premium 500,000 Notes : 1)The prepayment on building insurance on 31 December 2020 was £100,000. 2) The company issued 12,000 additional shares at £2.50 each on 30 Decemeber 2020. The proceeds were paid as Christmas bonuses to employees. No entries have been made in the company's accounting records in respect of this transaction What value include in Income statement and Statement of financial position?
The financial position as at 31st December, 2019 was as follows: EQUITY AND LIABILITIES GH¢ GH¢ Stated capital: Ordinary share [40,000 at GHC12.50 each] 500,000 Preference shares [20,000 at GHC8.00 each] 160,000          660,000 Long term capital 140,000          800,000 NON-CURRENT ASSETS Building and Land 400,000 Equipment 182,000 Motor Vehicles 48,000           630,000 CURRENT ASSETS Inventory 40,000 Accounts Receivables 20,000 Cash at bank 124,000 184,000 CURRENT LIABILITIES Accounts payable (14,000)          170,000 TOTAL ASSETS 800,000 Additional Information The Company has produced the following estimates: 1) The accounts payable figure of GH¢14,000 stated in the financial statement would be paid in January, 2020. The following credit purchases are settled a month…
Below is Company A's balance sheet at the end of 2022. Assume that Company A issues 25 shares of common stock and 1 share of preferred stock. What is the earnings per share of Company A? 2022 AmountNet sales$1,000.0Variable operating costs  770.0Fixed operating costs 50.0Depreciation and amortization 50.0Interest30.0Taxes20.0Preferred dividends5.0Common dividends25.0 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The following balances were obtained from the books of   Tim Curry plc as at December 31, 2020. DR CR Cost of Sales 758,500 Closing Stock 210,000 10 % Debenture 350,000 Debenture Interest 20,000 General Reserves 40,000 5% Loan 200,000 Loan Interest 6,000 Retained Earnings 20,000 Goodwill 200,000 Ordinary Share Capital @ $2 400,000 10 % Preference Share Capital @ $1 400,000 Share Premium 30,000 Sales Turnover 1,300,000 Debtors 60,000 Bank 8,000 Provision for Bad Debts 5,000 Wages and Salaries 122,000 Insurance 47,000 Management Fees       60,000 Directors   Fees       40,000 Motor Vehicle 500,000 Provision for Depn on Motor Vehicle 40,000 Premises 550,000 Machinery and Equipment 220,000 Creditors 33,000…
The following balances were obtained from the books of Tim Curry plc as at December 31, 2020. DR CR Cost of Sales 758,500 Closing Stock 210,000 10 % Debenture 350,000 Debenture Interest 20,000 General Reserves 40,000 5% Loan 200,000 Loan Interest 6,000 Retained Earnings 20,000 Goodwill 200,000 Ordinary Share Capital @ $2 400,000 10 % Preference Share Capital @ $1 400,000 Share Premium 30,000 Sales Turnover 1,300,000 Debtors 60,000 Bank 8,000 Provision for Bad Debts 5,000 Wages and Salaries 122,000 Insurance 47,000 Management Fees 60,000 Directors Fees 40,000 Motor Vehicle 500,000 Provision for Depn on Motor Vehicle 40,000 Premises 550,000 Machinery and Equipment 220,000 Creditors 33,000…
On 1 June 2021, Double Tree Bhd. Issues RM7 million 7% redeemable preference shares at RM1 each, redeemable at a premium of 10% on 31 May 2024. Dividend is payable on paid-up capital. The effective interest rate is 9.3 % and the interest is due on 31 May every year. Required: Show the extracts from the statements of profit or loss and the statements of financial position for the year 31 May 2021, where the redeemable preference share is measured at amortised cost
San Miguel Corporation provided the following balances on December 31, 2021: Accounts payable 500,000Accrued taxes 100,000Ordinary share capital 5,000,000Dividends - ordinary share 1,000,000Dividends - preference share 500,000Mortgage payable (P500,000 due in 6 months) 4,000,000Note payable, due January 31, 2023 2,000,000Share premium 500,000Preference share capital 3,000,000Premium on note payable 200,000Income summary - credit balance 4,000,000Retained earnings - January 1 2,500,000Unamortized issue cost on note payable 50,000Unearned rent income 150,000 1. What is the amount of noncurrent liabilities on December 31, 2021? 2. What is the amount of retained earnings on December 31, 2021?a. 6,500,000b. 2,500,000c. 1,000,000d. 5,000,000 3. What is the total shareholders’ equity on December 31, 2021?
The following information was taken from the accounting records of the company for 2020. Proceeds from issuance of preference shares P4,000,000 Dividends paid on preference shares 400,000 Bonds payable converted to ordinary shares 2,000,000 P ayment for purchase of machinery 500,000 Proceeds from sale of plant building 1,200,000 Retirement of bonds payable 2,500,000 2% bonus issue on ordinary shares 300,000 Purchase of ordinary treasury shares 120,000 Payment for purchase of debtinvestmentat amortized cost 450,000 Gain on sale of plant building 200,000 How much is the net cash flow from investing activities during 2020?
On 31 March 2021 a company has the following capital structure in the capital employed section of its statement of financial position. 50 000 Ordinary shares of $5= $250 000, Share premium 150 000, Retained income 1 500 000, 15 % Preference shares of $8= $200 000, 18% Debentures 600 000, In addition the company plans to use an average of $300 000 in bank overdraft with cost of 12%. The company`s tax rate is 30% and the return expected by ordinary dividends is 20%. Calculate the company`s weighted average cost of capital
JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021 15,000,000 Net income for 2022 18,000,000 Ordinary shares outstanding during 2020 600,000 On January 1, 2021, the entity granted a rights issue in the ratio of one new share for each 5 outstanding shares or a total of 120,000 shares. The rights are exercisable on March 1, 2021 and the exercise price is P5 per share. The market price of one ordinary share immediately before exercise of rights on March 1, 2021 is P11. Compute for the theoretical value of share ex-right.

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