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Accounting 22 - Unit 4 Assignment

Wolfsburg Ltd reported a total comprehensive income of R1,650,000 for the year ending March 31, 2018, an increase from R1,296,000 in 2017. The earnings per share rose from 964 cents in 2017 to 1,110 cents in 2018, reflecting improved profitability. The company declared a dividend per ordinary share of R3.49 for 2018, compared to no dividends in 2017.

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21 views4 pages

Accounting 22 - Unit 4 Assignment

Wolfsburg Ltd reported a total comprehensive income of R1,650,000 for the year ending March 31, 2018, an increase from R1,296,000 in 2017. The earnings per share rose from 964 cents in 2017 to 1,110 cents in 2018, reflecting improved profitability. The company declared a dividend per ordinary share of R3.49 for 2018, compared to no dividends in 2017.

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tereenpillay6
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Unit 4 – Assignment

Statement of Comprehensive Income of Wolfsburg Ltd for the reporting


period ending 31 March 2018

2017 2018
R R
Total comprehensive 1 296 000 1 650 000
income
Earnings per share 964 1 110
(cents)

Statement of Changes in Equity for the Reporting Period ended 31


March 2018
Note R
Dividend per ordinary share 3,49
(DPS)

Notes to the financial statements for the reporting period ending 31


March 2018
Earnings per share
Basic earnings per share was calculated based on earnings of R1 389 425
(2017: R1 252 800) and a weighted average number of 125 125
(2017: 130 000) ordinary shares after a capitalisation issueon 1 November
2016 and a share consolidation on 30 September 2017 was taken into
account.✓
Comparative amounts have been restated accordingly.

Reconciliation of earnings with profit for the year:


2017 2018
R R
Profit for the period 1 252 800 1 431 800
Less: Cumulative preference dividend R0 (42 375)
Less: Non-cumulative redeemable R0
preference dividend
Earnings attributable to ordinary 1 252 800 1 389 425
shareholders

Earnings

2017 2018
R R
Profit for the period 1 296 000 1 475 000
Less: Preference dividend (Interest) (750 000 x (60 000) (60 000)
8%)
Tax effect 16 800 16 800
Adjusted profit for the year 1 252 800 1 431 800
15% Preference Dividend (565 000 x 15% x 6/12) R0 (42 375)
10% Preference Dividend – not declared R0 R0
Earnings 1 252 800 1 389 425

Weighted average number of shares

2018 2017
Actual WANOS Actual WANOS
Balance 1 April 2016 275 000 275 000 275 000 275 000
Share buy-back 1 August
2016
Full Year (100 000) (100 000) (100 000)
Weighted average 9 (75 000)
/12
175 000 175 000 175 000 200 000
Capitalisation issue – 01
November
2016
175 000 x (3 52 500 52 500

/10)
52 500
200 000 x (3 60 000

/10)
227 500 227 500 227 500 260 000
Share consolidation – 30
September (113 750) (113 750) R0 (130 000)
2017 (5
/10)
113 750 113 750 227 500 130 000
Rights issue - 1 January 2018 45 500 11375 R0 R0
113 750 x (2
/5) x (3
/12)
45 500 125 125 227 500 130 000

Earnings per share

2017 2018
R R
1 252 800 1 389 425
130 000 125 125
Earnings/WANOS 964 cents 1 110 cents

Dividends per share


2017 2018
R R
793 650 0
227 500 0
Dividends/Ordinary Shares R 3 ,49 R0

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