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Stolb23 [73]
4 years ago
5

Farah Snack Co has earnings after taxes of $128, 750. Interest expense for the year was $20,000: preferred dividends paid were $

18, 750: and common paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock outstanding Earnings per share on the common stock was
A. $0.90
B. $1.10
C. $0.75
D. $0.80
Business
1 answer:
Leto [7]4 years ago
8 0

Answer:

A. $0.90

Explanation:

Earning per share = (Net Income - dividends on preferred stocks)/average outstanding common shares

Particulars                                                               Amount

Earning After Tax                                                       128750

Taxes                                                                       15000

Earning before Tax & Interest Expense               143750

Interest Expense                                                      (20000)

Earning after Interest, but before Tax                       123750

Taxes                                                                       (15000)

Earning after Taxes                                               108750

Preferred Dividends                                               (18750)

Earning available for common stock holders       90000

common stock outstanding                                      100000

Earning per share                                                         0.9

Therefore, The outstanding Earnings per share on the common stock was $0.90

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Julli [10]

Answer:

Explanation:

1.

Direct labour hours work during the period:

Product S=72,400 units×1 hour=72,400 hours

Product W=18,100 units × 3 hours=54,300 hours

Total labour hours=126,700 hour

Predetermined overhead rate=$958,396/126,700  =7.56 per hour

2.

Unit product cost of S = Direct Material cost + Direct labour cost + Overhead = 12+16+7.56*1 = $35.56

Unit product cost of W = Direct Material cost + Direct labour cost + Overhead = 34+13+7.56*3 = $69.68

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Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of job
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Answer:

Huduko Inc.

The number of servers in this system is:

= 200.

Explanation:

a) Data and Calculations:

Utilization rate = 30%

Interarrival time of jobs = 8 milliseconds (0.008)

Coefficient of variation = 1.5

Average jobs waiting in the queue to be served = 20

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Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).

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Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $240,000

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Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 240,000 / (4.97 - 1.97)

Break-even point in units= 80,000 units

<u>The break-even point analysis provides information regarding the number of units to be sold to cover for the fixed and variable costs.</u>

If the forecasted sales are 120,000, this means that the company will cover costs and make a profit. The margin of safety is 40,000 units.

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Answer:

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Explanation:

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