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1 A company has the following capital structure
$
50 000 ordinary $ 10 shares 500 000
1000 000 5% convertible loan stock 1 000 000

One half of the loan stock holders converted at the rate of three new ordinary shares of $ 10 each
per $ 100 of loan stock.

How many new ordinary shares were issued?
A 15000 B 150 000 C 200 000 D 300 000

2 A published balance sheet for a company at 1 January 2005 included
$
Ordinary share capital 500
Profit and loss account 200

The company results for the year to 31 December 2005 included
$ million
Profit before taxation 50
Taxation 15
Dividends proposed 10
Revaluation surplus on land 15

What was the profit and loss account balance at 31 December 2005?
A $ 225 million B $ 240 million C$250 Million D$265Million

3 The net assets of a company are shown below

Million$
net assets at original cost 100
net book value 50
fair value 70

A company pays $100 million cash plus $20 million in shares for all the net assets.
what will the annual goodwill amortization charge be if the company applies
a ten year economic lif of goodwill.

A $2 million
B $ 3million
C$5 Million
D $ 7Million

4 The table contains information for the two products of a company

Products X Y
contribution per unit $12 $9
machine hours required per unit 6 3
estimated sales demand 200 200
required machine hours 1200 600
machine capacity limited to 1200 hours

What is the maximum possible contribution ?
A $2100 B$3000 C$ 3300 D$4200

5 The data relates to two different levels of output in a department
Machine hours 16000 20000
overheads $214,000 $230,000

What is the amount of fixed overheads?

A $16000 B$64000 C$150000 D$198000

6 Budgets for the production of metal posts are shown.

1000 units 1500 units
$ $
direct material 20000 30000
direct labor 30000 45000
production overhead 40000 50000
marketing 40000 40000

what is the unit cost for a production run of 1200 units to the nearest
Dollar
A$70 B$87 C$112 D$120

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1 A company has the following capital structure
50 000 ordinary $ 10 shares 500 000
1000 000 5% convertible loan stock 1000000
One half of the loan stock holders converted at the rate of three new ordinary shares of $ 10 each per $ 100 of loan stock.
How many new ordinary shares were issued?
Number of new shares=15000

2 A published balance sheet for a company at 1 January 2005 included Ordinary share capital 500
Profit and loss account 200

The company results for ...

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