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kodGreya [7K]
3 years ago
15

A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6,200. Equit

y is worth $5,000. The firm has 500 shares of stock outstanding and net income of $720. What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?
Business
1 answer:
Jlenok [28]3 years ago
8 0

Answer:

new earnings per share is $1.53

Explanation:

Given data

excess cash = $300

Equity is worth = $5,000

other assets = $6,200

stock outstanding  = 500 shares

net income = $720

to find out

new earnings per share

solution

we know that equity per value is Equity / stock outstanding

that is

equity per value = (5000 / 500) = 10

equity per value = $10

and

we can purchase equity with excess cash $300 that is

= excess cash / equity per value

purchase equity with excess cash = (300 / 10)  = 30

purchase equity with excess cash = 30 shares

so

after repurchase we have balance share is =  (500 - 30) = 470

balance share = 470 shares

so that

new earnings per share will be = net income / balance share

new earnings per share =  (720 / 470) = 1.53

new earnings per share is $1.53

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A woman walks into a store and steals $100 she comes back and buys $70 worth of goods with the $100, the owner gives her$30 in c
deff fn [24]
The answer is $100.

Amount she steals= $100
Amount she bought goods= $70
Amount the owner returns as change = $30
Amount owner loses=?

Amount she steals +amount of goods - amount she gives to owner + amount owner returns as change = $100 + $70 - $100 + $30 = $200 - $100 = $100
8 0
3 years ago
A cheque of Rs 4500 received from yogesh and deposited into bank. Required: Journal Entry​
olga nikolaevna [1]

Answer:

See below

Explanation:

This transaction will affect the bank balance by increasing it with the check amount. The bank is cash (asset ) held in the bank. An increase in assets account is a debit. The bank A/c will be debited.

The check is received from Yogesh. Yogesh must have bought goods on credit and hence is an account receivable (asset). Since Yogesh has paid, his account decrease by the check amount. A decrease in assets is credited.

The journal entry will be

Bank A/c DR. Rs 4500

Yogesh A/c                 Cr. Rs 4500

3 0
2 years ago
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of whi
Anvisha [2.4K]

Answer:

Part a.

Income statement based on the absorption costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $6,048,000.00

Less Ending Inventory                                ($504,000.00) ($5,544,000.00)

Gross Profit                                                                            $3,256,000.00

Less Expenses :

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00     ($880,000.00)

Net Income/(loss)                                                                   $2,376,000.00

Part b.

Income statement based on the variable costing concept.

Sales                                                                                      $8,800,000.00

Less Cost of Sales

Beginning  Inventory                                          $0

Add Manufacturing Cost                          $5,520,000.00

Less Ending Inventory                                ($460,000.00) ($5,060,000.00)

Contribution                                                                            $3,740,000.00

Less Expenses :

Fixed manufacturing cost                          $528,000.00

Selling and administrative expenses:

Variable                                                      $528,000.00

Fixed                                                           $352,000.00      ($1,408,000.00)

Net Income/(loss)                                                                    $2,332,000.00

Part c.

Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.

Explanation:

<u>Units in Ending Inventory Calculation :</u>

Production                             48,000

Less Sales                            (44,000)

Ending Inventory                    4,000

Absorption Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Fixed manufacturing cost            $528,000.00

Total                                           $6,048,000.00

Ending Inventory =  $6,048,000.00 × 4,000 / 48,000

                            =   $504,000

Variable Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials                         $3,360,000.00

Direct labor                                 $1,344,000.00

Variable manufacturing cost        $816,000.00

Total                                           $5,520,000.00

Ending Inventory =  $5,520,000.00 × 4,000 / 48,000

                            =   $460,000

4 0
3 years ago
The Accounts Receivable balance for Lake​, Inc. at December​ 31, 2017​, was $ 20 comma 000. During 2018​, Lake earned revenue of
elena-s [515]

Answer:

The required journals are:

Debit Bad debt expense                                          $10,070

Credit Allowance for doubtful accounts                 $10,070

<em>(To record bad debt for the year)</em>

Explanation:

To understand the effects of the transactions, we need to journalize as follows:

Debit Accounts receivable                                    $454,000

Credit Sales revenue                                             $454,000

<em>(To record sales transaction on account)</em>

Debit Cash                                                             $325,000

Credit Accounts receivable                                  $325,000

<em>(To record collections on account)</em>

Debit Allowance for doubtful accounts                   $5,600

Credit Accounts receivable                                     $5,600

<em>(To record write-off of accounts receivable)</em>

With the above journals, the balance in accounts receivable will be: $20,000 + $454,000 - $325,000 - $5,600 = $143,400. The 5% of $143,400 will be $7,170.

The effect of the write-off was to throw the unadjusted allowance for doubtful account into debit as $2,700 - $5,600 = $2,900. The required bad debt expense will $10,070 ($7,170 + $2,900).

3 0
3 years ago
What is 2×78 please help​
Anvisha [2.4K]

Answer:

156

Explanation:

78

× 2

multiply the 2 by 8 first

then multiply the 7 by 2

3 0
3 years ago
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