Question $4$

a$)$ Sunshine Ltd had $15,000,000$ ordinary shares in issue on $1$ January

On $31$ July $2020,$ the company made a rights issue of $1$ for $4$ at

Sh$\mathrm{.}3\mathrm{.}5.$ The cum $-$rights price was Sh$\mathrm{.}4$ per share. On $30$ September

$2020,$ the company made an issue at full market price of $250,000$

shares. Finally, on $31$ October $2020,$ the company made a $1$ for $10$

bonus issue. Profit for the year was Sh$\mathrm{.}6,000,000.$ The reported EPS

for year ended $31$ December $2019$ was $0\mathrm{.}45$

Required: Determine the earnings per share figure for year ended $31$

December $2020$ and the restated EPS for year ended $31$ December

$(7$ marks$)$

b$)$ Explain four users of financial statements and explain clearly their

respective needs.

$(8$marks$)$