1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
RideAnS [48]
3 years ago
7

Ecker Company reports $2,700,000 of net income and declares $388,020 of cash dividends on its preferred stock for the year. At y

ear-end, the company had 678,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders?

2. What is the company’s basic EPS?
Business
2 answers:
choli [55]3 years ago
4 0

Answer:

1.

The net income available to common stockholders is $2,311,980

2.

The basic EPS is $3.41 per share.

Explanation:

1.

The net income available to common stockholders is the amount of net income that is left after deducting the preferred dividends from the net income for the year. Thus, net income available to common stockholders is,

Net Income available to common stockholders = Net Income - Preferred stock dividends

Net Income available to common stockholders = 2700000 - 388020

Net Income available to common stockholders = $2,311,980

2.

The basic EPS or basic earnings per share is the amount of earning or net income that a company has earned on each of its common stock/share. The basic EPS is calculated as follows,

Basic EPS = Net Income available to common stockholders / Weighted average number of common shares outstanding

Basic EPS = 2311980 / 678000

Basic EPS = $3.41 per share

erica [24]3 years ago
3 0

Answer:

Consider the following explanation

Explanation:

(1) - Net income is available to common stockholders for 2013

Net income is available to common stockholders = Reported Net Income – Preferred Dividend

= $2,700,000 - 388,020

= $ 2,311,980

(2) - Company’s Basic EPS for 2013

Basic Earnings Per Share [EPS] = Net income is available to common stockholders / weighted-average shares of common stock

= $ 2,311,980 / 678,000 Shares

= $3.41 per share

You might be interested in
Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]Riverside Inc. ma
Lyrx [107]

Answer:

64% it's the contribution margin of the company.

Explanation:

To find the contribution margin we need to find the gross profit which is the total sales minus the variable cost of goods, te contribution margin doesn't include the fixed costs only the variable ones.

Income Statement    

Quantities                    400      600              750           1.000  

Sales                      $148,000   $222,000   $277,500   $370,000  

Cost of goods sold     -$54,000  -$81,000         -$101,250  -$135,000  

Contribution Margin  $94,000  $141,000    $176,250   $235,000  

                                       64%       64%                 64%             64%

Fixed Cost                -$60,000  -$60,000   -$60,000  -$60,000  

Total Cost                 -$114,000  -$141,000      -$161,250  -$195,000  

Operating Income          $34,000    $81,000    $116,250   $175,000  

5 0
3 years ago
Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell
jarptica [38.1K]

Answer:

Effect on income= -$2,100

Explanation:

Giving the following information:

Contribution margin $ 98

Increase in variable cost= $5

Increase in sales= 300 units

<u>To determine the effect on income, we need to use the following formula:</u>

Effect on income= increase in contribution margin for new sales - increase in variable costs

Effect on income= 300*93 - 6,000*5

Effect on income= -$2,100

3 0
2 years ago
A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,
Ket [755]

Answer:

B. $270,000.

Explanation:

The computation of the total overhead cost is shown below:

But before that first we have to find out the variable overhead per hour which is

= $90,000 ÷ 15,000

= $6 per hour

Now

Variable overhead for 25,000 hours is

= $6 per hour × 25,000

= $150,000

So,

Total overhead cost is  

= Variable overhead for 25,000 hours + Fixed overhead cost

= $150,000 + $120,000

= $270,000

hence, the correct option is B. $270,000

6 0
3 years ago
Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 2
solniwko [45]

The cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

<h3>What is FIFO?</h3>

FIFO means First-in, First-out.

The FIFO cost flow method is an accounting technique to determine the cost of goods sold and ending inventory based on the assumption that goods produced first are the first to be sold.

The FIFO method is the opposite of the Last-in, First-out (LIFO) method.

<h3>Data and Calculations:</h3>

Number of units produced = 200,000 units

Cost of production = $3 million

Unit cost of production = $15 ($3,000,000/200,000)

Beginning finished goods inventory = 25,000 units

Cost of Beginning inventory = $310,000

Cost of goods sold = $3,085,000 ($310,000 + $15 x 185,000)

Thus, the cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

Learn more about the FIFO Cost Flow Method at brainly.com/question/19167666

#SPJ1

3 0
1 year ago
Adams Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales
vagabundo [1.1K]

Answer:

Expected contribution as per sales mix = $37*0.60 + $50*0.40

= $22.20 + $20

= $42.20 per unit

Total number of products in total at break even point = Total fixed cost / Contribution per unit

= $227,880 / $42.20 per unit

= 5,400 units

How many units each of Super and Supreme must Adams sell to break even?

<u>According to sales mix:</u>

Super = 5,400 * 60% = 3,240 units

Supreme = 5,400 * 40% = 2,160 units.

3 0
2 years ago
Other questions:
  • If the commercial mortgages on the balance sheet of this bank decline in value then the value of the bank's equity will rise.a.
    8·1 answer
  • Each year, Beca Motors surveys 8,100 former and prospective customers regarding satisfaction and brand awareness. For the curren
    5·1 answer
  • If you manage a 200-room hotel, and only sell 150 rooms tonight, you can't stockpile the extra 50 rooms to sell tomorrow. This i
    11·1 answer
  • Rachel is a manager at Eco Toys. Colin is her least preferred coworker because he meddles with the store accounts frequently. De
    13·1 answer
  • Gracie showed up at a new hair salon with her special color treatment coupon. A hairdresser named Bunny applied the color to Gra
    5·1 answer
  • Calculate gross profit ratio and cost of goods sold Refer to the consolidated statements of earnings in the Campbell Soup Compan
    9·1 answer
  • Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500
    5·1 answer
  • Boaz Company had the following information: Estimated Overhead $ 300,000 Actual Overhead $ 350,000 Estimated labor hours 75,000
    10·1 answer
  • Gerritt wants to buy a car that costs $28,250. The interest rate on his loan is 5.45 percent compounded monthly and the loan is
    11·1 answer
  • ⦁ Which of the following is a disadvantage of a sole proprietorship?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!