Answer: Option B
Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.
Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.
Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Relevant information is information you can’t trust-This statement is False because Relevant means that is something that makes sense or is important -So the statement holds False
Explanation:
Relevant information is the information that an individual require to perform a given task.
For example in order to write a program the person needs all the relevant information related to the program that is to written like the value of the variable,the format of the output required.
The term Relevant means "of Importance"
If a information required is very important then it can be obtained only through proper research work and hence it can be trusted
so we can say that-the statement that relevant information is information you can’t trust-is False
Answer:
a) Q = 100M + 60C
b) L = 0
c) L = Q / 60
d) Cost = $66.67
Explanation:
a)
Let M be the self service machines and L be the cashiers hired by company.
M = self service machines
C = hired cashiers
Q = Total output
Each self service machine can process 100 orders per hour = 100M
Cashier can process 60 orders per hour = 60C
Then,
Q = 100M + 60C
b)
Marginal Product of self service machine = 100 / 20 = 5 order per dollar
Marginal Product of cashier = 60 / 10 = 6 order per dollar
Marginal Product of cashier is higher than Marginal Product of self service machine(6 > 5).
Then, demand for self service machine is zero.
L = 0
c)
L = Orders to be processed / Order processed per cashier
L = Q / 60
d)
L = Q / 60
L = 400 / 60 = 6.66666667
Cost = L x 10 = 6.66666667 x 10 = $66.67
Hope this helps!
Answer:
(a) $40
(b) $24,000
(c) 40%
Explanation:
Given that,
Selling price = $100 per unit
Variable costs = $60 per unit
Fixed costs = $2,500 per month
Contribution margin per unit:
= Selling price - Variable costs
= $100 per unit - $60 per unit
= $40
Total Contribution margin:
= Contribution margin per unit × No. of units sold
= $40 × 600 units
= $24,000
Contribution margin ratio:
= (Selling price - Variable costs) ÷ Selling price
= ($100 per unit - $60 per unit) ÷ $100 per unit
= 0.4 or 40 %