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