UNIT 4 ASSIGNMENT (SOLUTION)

Wolfsburg Ltd
Statement of Comprehensive Income for the reporting period ending 31 March 2018
2018 2017
R R
Total comprehensive income 1 650 000 1 296 000
Earnings per share (cents) 1 110 964 P

Statement of Changes in Equity for the Reporting Period ended 31 March 2018

Note R R
Dividend per ordinary share (DPS) - 3,49 ✓P

Notes to the financial statements for the reporting period ending 31 March 2018

Earnings per share

Basic earnings per share was calculated based on earnings of R1 389 425^P (2017: R1 252 800^P) and
a weighted average number of 125 125^P (2017: 130 000^P) ordinary shares after a capitalisation issue
on 1 November 2016 and a share consolidation on 30 September 2017 was taken into account.✓
Comparative amounts have been restated accordingly. ✓

Reconciliation of earnings with profit for the year: ✓

2018 2017
R R
Profit for the period 1 431 800 1 252 800
Less: Cumulative preference dividend (42 375) -
Less: Non-cumulative redeemable preference dividend -
Earnings attributable to ordinary shareholders 1 389 425 ✓P 1 252 800✓P

Calculations:

Earnings

2018 2017
R R
Profit for the period 1 475 000 1 296 000
Less: Preference dividend (Interest) (750 000 x 8%) (60 000) ✓ (60 000)
Tax effect 16 800 ✓ 16 800
Adjusted profit for the year 1 431 800 1 252 800
15% Preference Dividend (565 000 x 15% x 6/12) ✓ (42 375) ✓P -
10% Preference Dividend – not declared - -
Earnings 1 389 425 1 252 800
Weighted average number of shares

2018 2017
Actual WANOS Actual WANOS
Balance 1 April 2016 275 000 ^ 275 000 ^ 275 000 ^ 275 000 ^
Share buy-back 1 August 2016
Full Year (100 000) (100 000)✓ (100 000)
Weighted average 9/12 ✓ (75 000) ✓P
175 000 175 000 175 000 200 000
Capitalisation issue – 01 November
2016
175 000 x (3/10) ✓ 52 500 52 500
52 500
200 000 x (3/10) ✓P 60 000
227 500 227 500 227 500 260 000
Share consolidation – 30 September
2017 (5/10) (113 750) (113 750)✓P - ^ (130 000) ^P
113 750 113 750 227 500 130 000
Rights issue - 1 January 2018 -
113 750 x (2/5) x (3/12) ✓ 45 500 11 375 ✓P ^ - ^
159 250 125 125 227 500 130 000

Earnings per share

2018 2017
R R
Earnings/WANOS 1 389 425 1 252 800
125 125 130 000
1 110 cents ✓P 964 cents ✓P

Dividends per share

2018 2017
R R
Dividends/Ordinary Shares 793 650
227 500
R0 ✓P R3.49✓P

29 max (25)