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CIMAPRA19-F02-1 Exam - Topic 1 Question 72 Discussion

On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4JKissued 600,000 ordinaryshares at the market value of $2.50a share. For the financial year ended 31 December 20X4 the statement of profit or loss showsprofit before tax of $625,000 and profit after tax of $500,000.What is the earnings per share for the year ended 31 December 20X4?
A) 23.8 cents and B) 36.8 cents
C) 26.3 cents
D) 29.4 cents

CIMAPRA19-F02-1 Exam - Topic 1 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 72
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

On 1 January 20X4 JK had 1,500,000 ordinary shares in issue. On 1 September 20X4JKissued 600,000 ordinaryshares at the market value of $2.50a share. For the financial year ended 31 December 20X4 the statement of profit or loss showsprofit before tax of $625,000 and profit after tax of $500,000.

What is the earnings per share for the year ended 31 December 20X4?

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Suggested Answer: A, B

by Virgie at Jul 27, 2023, 03:44 AM

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Billi
10 months ago
Not so sure about that, could be option D too!
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Chantay
10 months ago
I agree, B seems right based on the figures.
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Leah
10 months ago
Wait, how do we get to that number?
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Cecily
10 months ago
I think it's definitely option B!
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Tayna
10 months ago
Earnings per share calculation is key here!
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Susy
11 months ago
I feel like I might be mixing up the calculations. Was it profit before tax or after tax that we used for EPS? I hope I remember it right!
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Stephen
11 months ago
If I remember correctly, we had a similar practice question where we had to adjust for shares issued during the year. I think we should average the shares.
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Chara
11 months ago
I think we need to take the profit after tax and divide it by the total number of shares at the end of the year, but I can't recall the exact number of shares.
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Noel
11 months ago
I remember we calculated earnings per share in class, but I'm not sure if we included the new shares issued in the average calculation.
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Sarah
11 months ago
Okay, I've got a strategy for this. I'll navigate to the /dev/disk/by-uuid directory and list out the contents to see the available UUIDs.
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Maybelle
11 months ago
Okay, let me think this through. The question is asking for three runtime metrics, so I'll need to identify the options that fit that criteria. I'll make sure to read each one carefully.
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Golda
1 year ago
Wait, what? Earnings per share? I thought this was a bake-off competition. Time to whip up some delicious financial statements!
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Eileen
1 year ago
I bet the answer is 'all of the above' and they're just trying to see if we can spot the trick. Gotta keep my wits about me!
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Florinda
1 year ago
C) 26.3 cents
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Eura
1 year ago
Let's do the math and figure out the correct answer.
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Elbert
1 year ago
B) 36.8 cents
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Ines
1 year ago
I don't think it's all of the above, maybe we should calculate it.
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Man
1 year ago
A) 23.8 cents
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Patria
1 year ago
Hold on, is this a trick question? The numbers seem a bit too perfect. Maybe they're trying to lure us into a trap!
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Jamie
1 year ago
D) 29.4 cents
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Christiane
1 year ago
I'm going with C, the numbers make sense to me.
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Aileen
1 year ago
C) 26.3 cents
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Mariko
1 year ago
No, I don't think it's B. A seems more likely.
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Beth
1 year ago
B) 36.8 cents
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Sonia
1 year ago
I think it's A too, the numbers do seem too perfect.
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Helaine
1 year ago
A) 23.8 cents
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Pauline
1 year ago
I'm not sure about C, maybe it's a trick question after all.
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Leonora
1 year ago
C) 26.3 cents
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Zena
1 year ago
I think it's A too, the numbers do seem too perfect.
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Quiana
1 year ago
A) 23.8 cents
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Keneth
1 year ago
Ah, the classic 'what's the EPS' question. Better brush up on my financial accounting, or I'll be singing the blues on this one.
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Nan
1 year ago
I'm not sure, but I believe it's 23.8 cents.
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Brynn
1 year ago
Hmm, looks like we need to calculate the weighted average of the shares to get the correct earnings per share. Let's see, where's my calculator?
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Elenora
1 year ago
Allene: Yes, I found it. Let's calculate the earnings per share now.
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Scot
1 year ago
User 3: So, did you find your calculator to do the calculations?
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Allene
1 year ago
User 2: Yeah, that's right. It's an important step in determining the EPS.
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Candra
1 year ago
User 1: I think we need to calculate the weighted average of the shares to get the correct earnings per share.
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Filiberto
1 year ago
I calculated it to be 29.4 cents.
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Sabina
1 year ago
I think the earnings per share is 26.3 cents.
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