Neco 2018 Financial Accounting Question 36

Company Alpha reported the following information for the year ended 31 December:\n\n- Sales: \(\text{₦}1,200,000\)\n- Cost of goods sold: \(\text{₦}720,000\)\n- Operating expenses (excluding depreciation): \(\text{₦}150,000\)\n- Interest expense: \(\text{₦}30,000\)\n- Tax rate: \(30\%\)\n- Dividend paid: \(\text{₦}40,000\)\n- Ordinary shares issued and outstanding: 10,000\n\nAdditional data: Receivables before provision amount to \(\text{₦}80,000\) and a provision for doubtful debts equal to \(5\%\) of receivables is required. Equipment cost \(\text{₦}200,000\) has accumulated depreciation of \(\text{₦}80,000\); it is depreciated on a straight‑line basis over 5 years and one year of depreciation has not yet been recorded.\n\nCalculate the earnings per share (EPS) for the year.