Answer and Explanation:
The computation of the earnings and dividend per share is shown below;
But before that the net income should be determined
Sales 667000
Less: Costs 329000
Income before depreciation, interest and taxes 338000
Less: Depreciation expenses 73000
Operating income 265000
Less: Interest expenses 46500
Income before tax 218500
Less: Tax at 25% 54625
Net income 163875
a Earning per share = Net income ÷ Outstanding Common stock
= $163,875 ÷ 27200
= $6.02 per share
b Dividend per share = Dividend paid ÷ Outstanding Common stock
= $47000 ÷ 27200
= $1.73 per share
Answer:
Explanation:
Businesses can be affected by various environmental facors as political, economic, social and technological facors (PEST). All of these factors influence the decision making within the organization.
Let's briefly describe each of the factors:
1. Political factors: In some countries there are subsidiaries and tax exemptions for running a particular businesses. For example, tax exemptions for those doing green business or producing electric cars. In order to adress such risks, business people should investigate about legislation and political environment of countries.
2. Economic factors: Businesses are affected by economic well being of the market where it is based. For example, market largely differs in European ccountries and Central Asian countries. Most of the countries in Central Asia are developing countries, whereas European countries are developed and have economic stability. To handle such risks, businessman should research the potential markets on the issues of inflation rate, average income of people and etc.
3. Social factors: How society views the markets and what it demands. Some support green initiatives and want zero waist products and etc.
4. Technological environment: In case of electro cars, if there are no energy for charging them that could be the potential issue. Or if market is not really technologically advanced, business will need to educate the market about their innovational products and etc.
In order to manage such concerns there should be particular research and investigations held and of course financial requirements are important and should be met for budgeting purposes.
Answer:
1. There are 2,600 units in ending inventory.
2. Costs per unit under absorption costing $ 123
3.Value of ending inventory $ 319,800
Explanation:
Calculation of Ending inventory units.
Ending Inventory Units : Opening Units + Units produced - units sold
300 + 15,000 - 12700 = 2,600 units
Calculation of per unit cost under absorption costing
Under absorption costing, direct manufacturing costs as well as indirect factory overheads are considered.
Per units costs
Direct Materials $ 20
Direct Labour $ 60
Variable overhead $ 13
Fixed Overhead $ 30
Total costs per unit $ 123 under absorption costing
Calculation of ending inventory under absorption costing
The ending inventory calculated earlier of 2.600 units is multiplied by the per unit costs of $ 123 per unit to get the value of the ending inventory
$123 * 2600 units = $ 319,800
Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
Answer:
Date Account Title Debit Credit
January 31 Work in Process $540
Factory Overhead $540
Explanation:
Overhead is applies by linking it to direct labor.
Overhead is $20,000 when Direct labor is $100,000.
= 20,000 / 100,000
= 20%
The overhead for this job must therefore be:
= 20% * 2,700
= $540
