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NARA [144]
3 years ago
7

Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00

0, a tax rate of 21 percent, and paid out $95,000 in cash dividends. The common stock outstanding is 80,000 shares. a. What is the earnings per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the dividends per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
worty [1.4K]3 years ago
6 0

Answer:

A. Earning Per Share = $3.88 per Share

B. Dividend per Share = $1.99 per Share

Explanation:

Step 1: Calculate the Net Income Before Tax

Sales= $796,000, Cost= $327,000, Depreciation = $42,000, Interest = $34,000

Net Income Before Tax= Income for the period - Expenses

Net Income Before Tax= Sales- Costs- Depreciation- Interest

= $796,000-$327,000-$42,000-#34,000

=$393,000

Step 2: Calculate the Net Income After tax

Net Income After Tax = Net Income Before Tax - Tax for the period

Percentage for Tax (tax rate) = 21%

Tax for the Period = $393,000 x 21%

= $82,530

Net Income After Tax = $393,000- $82, 530

= $310,470

Step 3: Calculate Earnings Per Share

Number of Outstanding Shares = 80,000 Shares

Dividend paid = $95,000

Earnings Per Share = Net Income After Tax/ Number of Shares

= $310,470/80,000

=3.880875 Per Share (intermediate calculations not rounded)

=$3.88 Per Share (rounded to 2 decimal places)

Step 4: Calculate Dividends Per Share

Dividend Per Share = Cash Dividend Paid/ Number of Shares

= $95,000/80,000

=$1.1875 (intermediate calculations not rounded)

=$1.19 Per Share (rounded to 2 decimal places)

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Gross domestic product (gdp) is the total market value of all intermediate and final goods and services produced by an economy i
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The financial statements include an introduction known as the management discussion and analysis. This preface must contain info
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Add : raw material purchase 184500

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Raw material consumed 169800

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Factory supplies used 16800

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Property taxes 5500

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Repairs factory equipment 4500

Total manufacturing overhead 148800

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Sales revenue 1350000

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goods available for sale 422450

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Less : office suppplies used (1600)

Less : other administrative exp (72000)

Less : Salaries exp (325000) (495500)

Net income 500850

BALANCE SHEET CURRENT SECTION :

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Current assets

Cash 260000

Account receivable 275000

Prepaid exp 41250

Inventory

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A. Layoff some workers and acquire more capitals.

Explanation:

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