The following trial balance relates to Xtol at 31 March 2014:
The following notes are relevant:
(i) Revenue includes an amount of $20 million for cash sales made through Xtol’s retail outlets during the year on behalf of Francais. Xtol, acting as agent, is entitled to a commission of 10% of the selling price of these goods. By 31 March 2014, Xtol had remitted to Francais $15 million (of the $20 million sales) and recorded this amount in cost of sales.
(ii) Plant and equipment is depreciated at 12？% per annum on the reducing balance basis. All amortisation/depreciation of non-current assets is charged to cost of sales.
(iii) On 1 August 2013, Xtol made a fully subscribed rights issue of equity share capital based on two new shares at 60 cents each for every five shares held. The market price of Xtol’s shares before the issue was $1·02 each. The issue has been fully recorded in the trial balance figures.
(iv) On 1 April 2013, Xtol issued a 5% $50 million convertible loan note at par. Interest is payable annually in arrears on 31 March each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 March 2016.
The interest on an equivalent loan note without the conversion rights would be 8% per annum. The present values of $1 receivable at the end of each year, based on discount rates of 5% and 8%, are:
(v) An equity dividend of 4 cents per share was paid on 30 May 2013 and, after the rights issue, a further dividend of 2 cents per share was paid on 30 November 2013.
(vi) The balance on current tax represents the under/over provision of the tax liability for the year ended 31 March 2013. A provision of $28 million is required for current tax for the year ended 31 March 2014 and at this date the deferred tax liability was assessed at $8·3 million.
Required:
(a) Prepare the statement of profit or loss for Xtol for the year ended 31 March 2014.
(b) Prepare the statement of changes in equity for Xtol for the year ended 31 March 2014.
(c) Prepare the statement of financial position for Xtol as at 31 March 2014.
(d) Calculate the basic earnings per share (EPS) for Xtol for the year ended 31 March 2014.
Note: Answers and workings (for parts (a) to (c)) should be presented to the nearest $1,000; notes to the financial statements are not required.
The following mark allocation is provided as guidance for this question:
(a) 8 marks
(b) 6 marks
(c) 8 marks
(d) 3 marks