Answer:
Plan I EPS = $2.19
Plan II EPS = $1.97
Explanation:
The computation of EPS for both Plan I and Plan II is shown below:-
Plan I Plan II
Expected EBIT $700,000 $700,000
Less Interest $227,200
($2,272,000 × 10%)
Profit before tax a $700,000 $472,800
Less: Tax
Earning to equity
shareholder b $700,000 $472,800
Number of equity
Shares (a ÷ b) $2.19 $1.97
Therefore for Plan I the EPS = $2.19 and for Plan II the EPS = $1.97
Answer:
b.a movement down and along a given investment demand curve
Explanation:
The federal reserve used purchase and sale of government securities to control liquidity within the economy. When there is excess liquidity government securities are sold toop up cash. When there is low liquidity the government buys up securities to increase liquidity.
In this instance if the government buys securities it will cause a movement down and along investment demand curve. That is it will result in lower prices and higher quantity being purchased
Answer:
The correct answer is: Footloose Activities.
Explanation:
Footloose Activities are those that do not change in costs regardless of the location where they are performed. In the corporate world, Footloose Industries are usually those that have almost fixed manufacturing costs anywhere around the world and include computer chips production, for instance.
Answer:
C. $142.50
Explanation:
From the existing contract,
200 units for $10 each
150 units were delivered so, 10 x 150= $1500.
The customer wants to extend the contract for additional 100 units at $9.50 each.
So,what is the revenue to Harold Corporation for these additional units which cost $9.50 for the next 15 units.
Therefore, 15 x 9.50= $142.504
Answer:
The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.
Explanation:
According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.