calculate the following

Timber Town Ltd is a manufacturer of wooden furniture and is listed on the local stock

exchange. The following are extracts from the company's Statement of Profit and Loss

for the years ended 31 December 2020 and 31 December 2021.

2020

Operating profit

660 000

Finance costs (relates only to the 12% debentures)

(90 000)

Profit before tax

570 000

Taxation for the year

(159 600)

Profit after tax

410 400

The company's issued share capital at 1 January 2020 was as follows:

3 000 000 ordinary shares of 25 cents each.

700 000 10% cumulative irredeemable preference shares at a face value of R1

each.

On 1 July 2020, the company issued 12% convertible debentures at face (nominal)

value for a total of R1 500 000. Each debenture has a face value of R100 and is con-

vertible into 125 ordinary shares on 31 December 2023.

On 1 October 2020, Timber Town Ltd issued another 1 000 000 ordinary shares at

25c each.

There were no other changes to the issued share capital. The South African income

tax rate has remained unchanged at 28% for the past two years. Ignore VAT and

dividends tax.

1. DEPS (Diluted earnings per share) for the year ended 31 December 2020.