Neco Model Questions Vol1 2018 Financial Accounting Question 50

Company XYZ has the following information (in naira): ordinary share capital - 10,000 shares of \(\text{₦}100\) each; preference shares - 2,000 shares of \(\text{₦}50\) each, 6 % cumulative dividend; beginning retained earnings \(\text{₦}150,000\); net sales \(\text{₦}1,200,000\); cost of goods sold \(\text{₦}720,000\); operating expenses \(\text{₦}180,000\); interest expense \(\text{₦}30,000\); tax rate 30 % on profit before tax; ordinary dividends declared and paid \(\text{₦}40,000\); a revaluation surplus of \(\text{₦}20,000\) (not affecting profit); an unrealised gain on available‑for‑sale securities of \(\text{₦}15,000\) (recorded in OCI). Compute (a) the profit for the year attributable to ordinary shareholders, and (b) the earnings per ordinary share (EPS) after tax and after payment of the preference dividend.