On 1 January 2014 Manbobbie Ltd Decided to Issue 40

question 37

Multiple Choice

On 1 January 2014 Manbobbie Ltd decided to issue 40 000 shares to the public, payable as follows:
50 cents initially on application
20 cents payable within one month of allotment
30 cents payable in calls due 30 September 2015.
Assuming the issue was fully subscribed and all amounts due were received by 30 June 2014. The balance of the Share Capital account on that date was:

• A) $20 000.
• B) $40 000.
• C) $28 000.
• D) $12 000.

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue, calculated by dividing sales by the average total assets.

DuPont Formula

A method that breaks down the return on equity into three component parts—profit margin, asset turnover, and financial leverage—to analyze a company's financial performance.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by its cost.

Investment Centers

Divisions or departments within a company responsible for generating revenue and controlling costs.