Neco Model Questions Vol1 2021 Financial Accounting Question 44
Practice objective / multiple choice question 44 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Company XYZ reported the following for the year ended 31 December 2021 (amounts in naira): Sales revenue 1,200,000; Cost of goods sold 720,000; Operating expenses 180,000; Interest expense 30,000; Tax rate 30 % on profit before tax. At the start of the year there were 50,000 ordinary shares. On 1 July a rights issue at a ratio of 1 new share for every 4 existing shares was made at a subscription price of 10 naira per share, and all rights were exercised. No dividends were paid. Calculate (a) profit after tax, (b) the weighted‑average number of ordinary shares for the year, and (c) earnings per share (EPS) for the year.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 44. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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