3. KC Mart, a supermarket company issued 2 for 5' rights shares in December 20219 to its existing shareholders at Nu. 120. There are 5,000 shareholders of KC Mart as per the shareholders' register and the shares are currently traded at Nu. 135. Those shares were initially offered at Nu. 100. Out of 5000 shareholders, only 70% of them chose to accept rights issue. The remaining shares were sold through public auction. Required i) In group, calculate the number of rights shares ii) Pass accounting entries for all related transactions and events, and iii) Find out the total number of share capital after rights issue of shares. iv) Discuss how shares sold through public auction will be accounted. Students must contact relevant persons in the companies where such issues were made, if possible.​

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?