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tamaranim1 [39]
3 years ago
8

Hungry lunch has net income of $73,402, a price-earnings ratio of 13.7, and earnings per share of $.43. How many shares of stock

are outstanding?
Business
2 answers:
Degger [83]3 years ago
6 0

Answer: The number of shares outstanding is approximately 170702.32 shares.

We have :

EPS                       $0.43

Net Income       $73,402

The formula for computing EPS is

EPS = \frac{Net Income}{Number of shares outstanding}

Substituting the values from the question in the formula above we get,

Number of shares outstanding = \frac{73402}{0.43}

Number of shares outstanding = 170702.3256

zaharov [31]3 years ago
3 0

<u>The total number of outstanding shares is 170,702. </u>

Further Explanation:  

Outstanding shares:

The outstanding shares are part of the share capital, which is issued and held by the shareholders. The shares that are purchased by the public and other buyers and currently floating shares in the market are known as outstanding shares. It is a liability of the company and shown as the “Capital Stock” in the liabilities side of the balance sheet.

Calculate the number of outstanding shares:

The price-earnings ratio is calculated by dividing the net income with the total number of outstanding shares. The net income is $73,402 and the price-earnings ratio is 13.7. The total number of outstanding shares can be calculated as follows:

\begin{aligned}\text{Price-earnings ratio}&=\frac{\text{Net income}}{\text{Number of outstanding shares}}\\0.43&=\frac{\$73,402}{\text{Number of outstanding shares}}\\\text{Number of outstanding shares}&=\frac{\$73,402}{0.43}\\&=170,702\end{aligned}

Thus, the total number of outstanding shares is 170,702.

Learn More:

1. Learn more about the factors affecting the stock price

<u>brainly.com/question/11192535 </u>

2. Learn more about the effect of the stock on the balance sheet

<u>brainly.com/question/4503027 </u>

3. Learn more about the earning per share

<u>brainly.com/question/10985616 </u>

Answer Details:

Grade: Middle school

Chapter: Share capital

Subject: Accounting  

Keywords: Hungry, lunch, net, income, price-earnings, ratio, earnings, per, share, shares, stock, outstanding, net profit, shares.

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3 0
1 year ago
L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be
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Answer: See attachment and explanation

Explanation:

1. Ortiz purchased a 20% interest for $20,000.

Total capital after the admission of the partner will be:

= ($96000 - $4000) + ($40000 - $4000) + $20000

= $92000 + $36000 + $20000

= $148000

The share of new partner in the capital structure will be:

= Total capital × Interest of new partner

= $148000 × 20%

= $29600

There'll be a deficiency in the profit which the existing partner contributes to and this will be:

= $29600 - $20000

= $9600

Then each partner shares =$9600/2 = $4800

2. Ortiz purchased a 30% interest for $60,000.

Total capital after the admission of the partner will be:

= ($96000 - $4000) + ($40000 - $4000) + $60000

= $92000 + $36000 + $60000

= $188000

The share of new partner in the capital structure will be:

= Total capital × Interest of new partner

= $188000 × 30%

= $56400

Since the share is less than the amount of $60000 bought in, the existing partner will be compensated in the amount of ($60000 - $56400) = $3600. Therefore each partner gets $3600/2 = $1800

Check attachment for the journal entries.

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Answer:

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3 years ago
In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married fil
serg [7]

Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

<h3>What is tax liability?</h3>

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

<h3>Data and Calculations:</h3>

Earned income = $14,000

Qualified Dividend income = $5,000

Adjusted taxable income = $6,450 ($19,000 - $12,550)

Tax liability = $645 ($6,450 x 10%)

Thus, Carson's tax liability for 2021 is $645.

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The Engine Division provides diesel engines for the Motor Home Division of a company. The standard unit costs for Engine Divisio
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Answer:

The best transfer price to avoid transfer price problems is $2,310

Explanation:

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Variable Cost = Direct Material + Direct labor + Variable Overhead

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                       = 2,100

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Therefore, The best transfer price to avoid transfer price problems is $2,310

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