Neco 2019 Financial Accounting Question 23

The following information relates to ABC Manufacturing for the year ended 31 December 2022:\n\n- Opening Stock: \(\text{₦}50,000\)\n- Purchases: \(\text{₦}300,000\)\n- Closing Stock: \(\text{₦}80,000\)\n- Sales: \(\text{₦}500,000\)\n- Machinery cost: \(\text{₦}120,000\) (depreciated at 10% per annum)\n- Trade Receivables at year‑end: \(\text{₦}40,000\) (bad debts are 5% of receivables)\n- Prepaid rent of \(\text{₦}24,000\) for six months at year‑end (rent expense for the year is therefore \(\text{₦}12,000\))\n- Salaries expense: \(\text{₦}80,000\)\n- Electricity expense: \(\text{₦}20,000\)\n- Net profit before tax is to be taxed at 30%.\n- The company has 10,000 ordinary shares outstanding.\n\nCalculate (a) the net profit after tax for the year and (b) the earnings per share (EPS) in naira.