Answer:
The question is missing requirement below:
Calculate the EPS before and after the change in capital structure and indicate changes in EPS. (Negative answer should be indicated by a minus sign. Round your answers to 2 decimal places.) EPS before $ EPS after $ Difference $.
The EPS before change in capital structure is $1.90 per share and $1.29 per share after the change in capital structure,hence there is a drop of $0.61 per share in EPS as a result of increase in the number of shares emanating from fresh issue of shares.
Explanation:
EPS gives an indicator of the amount of earnings after tax and interest that each ordinary share is entitled to in a year.
Earnings tells us how much a company has per share to pay dividends and reinvest in the business since internal finance is the cheapest form of finance.
EPS is calculated as total earnings attributable to ordinary shareholders divided weighted average number of shares as shown in the attached spreadsheet
Answer:
Internal transfer benefits the company but the division managers cannot agree on a price.
Explanation:
Based on the scenario been described in the question, the situation when the top managers can intervene, it is when internal transfer will benefit the company, but the division managers cannot come into a unanimous agreement, in this case, it will make the top managers to step in making and help in the decision of pricing for them to resolve the conflict of agreeing on price.
Answer:
The incorrect option is D. The inventory shrinkage cannot be recognized by debiting an operating expense.
Explanation: Even though it is correct saying that diminishing inventories will have an impact on the P&L sheet through debiting the records, it is incorrect booking that operation in the expenses. Inventories are affected by cost variations, so the debt must go in Cost of goods sold (option c). The other options are correct since Inventory shrinkage refers to a loss in physical inventory not recognized yet in the accounting (option a and b). This loss can be caused by deterioration or robbery (option e).
Answer:
The correct answer is letter "E": 80.
Explanation:
According to the U.S. Bureau of Labor Statistics (<em>BLS</em>) by the end of the second quarter in 2019 over 107 million workers -around 80% of the total American labor force- were engaged in the private service industry. The most important sectors related were <em>transportation, utilities, education, health care, professional, </em>and <em>business services</em>.
Answer:
Assets Liabilities Stockholder's Equity
1. Authorizing and issuing Not affect Not affect Not affect
stock certificates in a
stock split
2. Declaring a stock Not affect Not affect Not affect
dividend
3. Issuing stock certificates Not affect Not affect Not affect
for the stock dividend
declared in (2)
4. Declaring a cash dividend Not affect Increase Decrease
5. Paying the cash dividend Decrease Decrease Not affect
declared in (4)