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expeople1 [14]
3 years ago
13

Frantic Fast Foods had earnings after taxes of $900,000 in 20X1 with 301,000 shares outstanding. On January 1, 20X2, the firm is

sued 32,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 28 percent. a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Business
1 answer:
Semmy [17]3 years ago
5 0

Answer:

A.$2.99

B.$1.15

Explanation:

Frantic Fast Foods

A.Computation of the earnings per share for the year 20X

Using this formula

Earnings per Share=Earnings after Taxes/Shares Outstanding

Let plug in the formula

900,000/301,000

=$2.99

The earnings per share for 20X1 will be $2.99

B. Computation of the earnings per share for the year 201X

Earnings after Taxes= 301,000 * 1.28 = 385,280

Shares Outstanding=301,000 + 32,000 = 333,000

Hence,

Earnings after Taxes/Shares Outstanding

385,280 / 333,000 = $1.15

Therefore the earnings per share for 20X1 will

be $1.15 .

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Explanation:

a) Data and Calculations:

Cash Account

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Ending inventory     5,200

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b) An asset is something that brings in future cash flows to the business entity.  It is made up of Cash and Cash Equivalents, Inventories, Property, Plant, Equipment, and other business investments.  Assets are funded from finance provided by creditors and the equity owners, and they generate economic values.

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Assume that subway tokens are $1.50 today and the price will go up to $2.00 tomorrow. how many tokens would you buy?
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The number of tokens to be purchased will depend on the purchasing power of my present capital.

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