FN247 P1 Q Jan2011 Final Questions
NORTHUMBRIA UNIVERSITY
NEWCASTLE BUSINESS SCHOOL
FN0247 Corporate and Group Accounting – Level 5
Paper 1
January 2011
Time allowed:
2 Hours-plus 10 minutes reading time
Instructions:
This is a CLOSED BOOK examination
Four questions set
Answer any three questions
All questions carry EQUAL MARKS
Total marks possible: 75
Page 1 of 8
Question 1
1(a)
Company X has a year end of 30 November.
The company’s share capital consisted of £1,000,000 of 25p shares. The market value of these shares was £1.10 on 31 May 2010. On 1 June 2010, the company made a 1 for 4 rights issue at 60p per share.
The profits attributable to ordinary shareholders were:
Year to 30 November 2010
Year to 30 November 2009
£
500,000
440,000
Required:
Calculate the original and revised EPS for 2009.
Calculate the basic EPS for 2010.
(14 Marks)
1(b)
Company Y has a year end of 31 December.
The company’s share capital consisted of 1,000,000 shares.
It had 500,000 10% £1 preference shares which could be converted into ordinary shares at one ordinary share for ten preference shares.
The company also had £250,000 10% convertible loan stock. These could be converted by 2016 into 500 shares for each £1,000 of loan stock.
The tax rate was 30%
The profit after tax for the year ended 31 December 2009 was £5,000,000.
Required:
Calculate the basic and diluted EPS for 2009.
(11 marks)
[TOTAL MARKS=25]
Page 2 of 8
Question 2
2
The following information relates to Houser Ltd.
31 March 2010
31 March 2009
£000
£000
£000
£000
Non-current assets:
Tangible assets
Current assets:
Inventories
Trade receivables
Bank
28,500
18,750
6,750
-
Current liabilities:
Trade payables
Bank overdraft
Tax
Non-current liabilities:
Loan
Deferred tax
25,500
7,050
3,950
- (11,000)
17,200
1,800
(19,000)
35,250
6,900
3,000
300
10,200
6,300
4,900 (11,200)
8,000
1,200
(9,200)
24,000
25,050
18,000
6,000
16,000
9,050
24,000
25,050
31 March 2010
£000
83,000
(65,700)
17,300
(18,000)
(2,000)
(2,700)
700
(2,000)
31
NEWCASTLE BUSINESS SCHOOL
FN0247 Corporate and Group Accounting – Level 5
Paper 1
January 2011
Time allowed:
2 Hours-plus 10 minutes reading time
Instructions:
This is a CLOSED BOOK examination
Four questions set
Answer any three questions
All questions carry EQUAL MARKS
Total marks possible: 75
Page 1 of 8
Question 1
1(a)
Company X has a year end of 30 November.
The company’s share capital consisted of £1,000,000 of 25p shares. The market value of these shares was £1.10 on 31 May 2010. On 1 June 2010, the company made a 1 for 4 rights issue at 60p per share.
The profits attributable to ordinary shareholders were:
Year to 30 November 2010
Year to 30 November 2009
£
500,000
440,000
Required:
Calculate the original and revised EPS for 2009.
Calculate the basic EPS for 2010.
(14 Marks)
1(b)
Company Y has a year end of 31 December.
The company’s share capital consisted of 1,000,000 shares.
It had 500,000 10% £1 preference shares which could be converted into ordinary shares at one ordinary share for ten preference shares.
The company also had £250,000 10% convertible loan stock. These could be converted by 2016 into 500 shares for each £1,000 of loan stock.
The tax rate was 30%
The profit after tax for the year ended 31 December 2009 was £5,000,000.
Required:
Calculate the basic and diluted EPS for 2009.
(11 marks)
[TOTAL MARKS=25]
Page 2 of 8
Question 2
2
The following information relates to Houser Ltd.
31 March 2010
31 March 2009
£000
£000
£000
£000
Non-current assets:
Tangible assets
Current assets:
Inventories
Trade receivables
Bank
28,500
18,750
6,750
-
Current liabilities:
Trade payables
Bank overdraft
Tax
Non-current liabilities:
Loan
Deferred tax
25,500
7,050
3,950
- (11,000)
17,200
1,800
(19,000)
35,250
6,900
3,000
300
10,200
6,300
4,900 (11,200)
8,000
1,200
(9,200)
24,000
25,050
18,000
6,000
16,000
9,050
24,000
25,050
31 March 2010
£000
83,000
(65,700)
17,300
(18,000)
(2,000)
(2,700)
700
(2,000)
31