9 Jim effects a 1:4 bonus issue. Before the issue Jim had 40,000 £1NV shares and shareholder funds of £60,000. Calculate the post-issue retained earnings. A) £60,000 B) £40,000 C) £10,000 D) None of these 10 Alf leased a plant for 5 years contracting to pay £2,300 yearly in arrears. If interest rates were 3% p.a, and the plant fair value was £10,530. Total liabilities at the end of year 03 will be nearest A) £2,229 B) £4,397 C) £6,502 D) None of these 11 Reg sells mowers at £2,500 each. Cost price is £1,200 and unit sales expenses are £200. There were no unsold mowers last year and 25 this year. Further purchases of 40 took place this year. Calculate net profits. A) £34,500 B) £16,500 C) £18,000 D) None of these 12 Will had prepaid wages of £16,000 at the start of the year. Annual wages were £50,000 for the year, and salaries owing at the end of the year were £10,000. How much did Wil pay for salaries during the year? ABUD £24,000 £18,000 £12,000 None of these
9 Jim effects a 1:4 bonus issue. Before the issue Jim had 40,000 £1NV shares and shareholder funds of £60,000. Calculate the post-issue retained earnings. A) £60,000 B) £40,000 C) £10,000 D) None of these 10 Alf leased a plant for 5 years contracting to pay £2,300 yearly in arrears. If interest rates were 3% p.a, and the plant fair value was £10,530. Total liabilities at the end of year 03 will be nearest A) £2,229 B) £4,397 C) £6,502 D) None of these 11 Reg sells mowers at £2,500 each. Cost price is £1,200 and unit sales expenses are £200. There were no unsold mowers last year and 25 this year. Further purchases of 40 took place this year. Calculate net profits. A) £34,500 B) £16,500 C) £18,000 D) None of these 12 Will had prepaid wages of £16,000 at the start of the year. Annual wages were £50,000 for the year, and salaries owing at the end of the year were £10,000. How much did Wil pay for salaries during the year? ABUD £24,000 £18,000 £12,000 None of these
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 7P
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Question
Transcribed Image Text:9
Jim effects a 1:4 bonus issue. Before the issue Jim had 40,000 £1NV shares and
shareholder funds of £60,000. Calculate the post-issue retained earnings.
A) £60,000
B) £40,000
C) £10,000
D) None of these
10
Alf leased a plant for 5 years contracting to pay £2,300 yearly in arrears. If interest rates
were 3% p.a, and the plant fair value was £10,530. Total liabilities at the end of year 03 will
be nearest
A) £2,229
B) £4,397
C) £6,502
D) None of these
11
Reg sells mowers at £2,500 each. Cost price is £1,200 and unit sales expenses are £200.
There were no unsold mowers last year and 25 this year. Further purchases of 40 took
place this year. Calculate net profits.
A) £34,500
B) £16,500
C) £18,000
D) None of these
12
Will had prepaid wages of £16,000 at the start of the year. Annual wages were £50,000
for the year, and salaries owing at the end of the year were £10,000. How much did Wil
pay for salaries during the year?
ABUD
£24,000
£18,000
£12,000
None of these
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