(a)[11]
Prepare the statement of profit or loss for the year ended 30 September 2022. Use the space provided to set out your workings.
(b)[6]
Calculate the retained earnings balance at 30 September 2022 after the bonus issue.
(c)[1]
State one reason why the directors of a company might decide to make a bonus issue.
(d)[2]
Explain one reason why trade payables and potential lenders might approve of a company making a bonus issue.
(e)[3]
Identify three points the directors should take into account when deciding whether to pay a dividend.
(f)[7]
Advise the directors which option they ought to choose. Justify your choice by discussing both options.