Qustion 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
Question 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. $265Million
Question 3. The net assets of a company are shown below
Million$
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 amortisation charge be if the company applies a ten year economic lif of goodwill.
A $2 million
B $ 3million
C $5 Million
D $ 7Million
Question 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
Question 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
Question 6. Budgets for the production of metal posts are shown.
1000 units 1500 units
$ $
direct material 20000 30000
direct labours 30000 45000
production overhead 40000 50000
marketing 40000 40000
What is the unit cost for a production run of 1200 units to the nearest dollors
A. $70
B. $87
C. $112
D. $120