QUESTION 4 (25 marks)

The following is the abridged statement of comprehensive income of Sunlite Ltd for the year ended 31^st March 2020 and 2019.

2020 2019

N$ N$

Profit from operations 3 862 500 3 012 000

Dividends received 186 750 165 300

Profit before tax 4 049 250 3 177 300

Income tax (1 636 750) (1 313 300)

Profit for the period 2 412 500 1 864 000

The issued ordinary share capital of Sunlite Ltd on 1^st April 2018 was 1 800 000 shares of N$1 each. On 31^st July 2018 the company issued 450 000 shares for cash. On 1^st August 2019 the company made a bonus issue of three shares for every ten held. On 31^st December 2019 a rights issue was made of one share for every nine held at 5 percent less than market value

Dividends of N$1 100 000 (2012 N$950 000) were paid to ordinary shareholders on 31^st March 2020. Non-cumulative 10% preference dividends paid were N$100 000 (2019) and N$100 000 for the year ended 31^st March 2020.

REQUIRED

Calculate basic EPS for the years ended 31^st March 2019 and 2020. (25 marks)

Show all relevant workings.