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How many new ordinary shares were issued?

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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

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
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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Please see the **attached EXCEL** file for complete details.

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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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