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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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Why dress code important ?
mote1985 [20]

Answer:

Visual Uniformity – Having every employee dressed to the standards of the dress code will create visual uniformity which helps customers identify employees and subtly promotes the impression of 'being a team' among the whole workplace.

Explanation:

1) A dress code promotes a more serious school atmosphere which emphasizes academics and promotes good behavior.

2) Dress codes have proven to increase student achievement by encouraging students to concentrate more on their studies and less on their wardrobe. A de-emphasis on clothing can also save money, as there will be less pressure to keep up with expensive trends and fashions.

3) Dress codes in school settings reduce social conflict and peer pressure that may be associated with appearance.

4) Studies indicate that a school dress code can reduces the prevalence of certain behaviors which are often expressed through wardrobe such as violence or promiscuity.

5) As opposed to uniforms, dress codes still allow students to wear what they want which leaves students with a sense of choice and expression.

3 0
3 years ago
Maris Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June following information in its prepa
Citrus2011 [14]

An swer:

June $975,286

April $1,118,052

May $1,076,856

Explanation:

Maris Brothers Inc.Schedule of Projected Cash Disbursements

April May June

Purchases (0.55 x sales)

April $542,000 ×0.55= $298,100

May $629,000×0.55=$345,950

June $657,000×0.55=$361,350

Cash purchases (.10)

April $542,000 ×0.10= $54,200

May $629,000×0.10=$62,900

June $657,000×0.10=$65,700

Payments of A/PLagged 1 month (0.45)

April $542,000 ×0.45= $243,900

May $629,000×0.45=$283,050

June $657,000×0.45=$295,650

Lagged 2 months(0.45)

April $542,000 ×0.45= $243,900

May $629,000×0.45=$283,050

June $657,000×0.45=$295,650

Rent payments

April $8,030

May $8,030

June $8,030

Wages and salaries

April $542,000 ×0.068+5,800= $42,656

May $629,000×0.068+5,800=$48,572

June $657,000×0.068+5,800=$50,476

Tax Payments

June $54,100

Fixed-asset outlays

April $74,000

Interest payments

June $30,400

Cash dividend payments

April $12,500

Total Cash Disbursements

June

($298,100 +$54,200+$243,900+$243,900+$8,030+$42,656+$54,100+$30,400)

=$975,286

April

($345,950+$62,900+$283,050+$283,050+$8,030+$48,572+$74,000+$12,500)

=$1,118,052

May

($361,350+$65,700+$295,650+$295,650+8,030+$50,476)

=$1,076,856

6 0
3 years ago
EvenFlo Pipes forecasts a small increase in sales next year. To achieve this growth in sales, however, the firm must purchase an
TEA [102]

Answer: a. The firm must purchase lumpy assets to achieve the increase in sales.

Explanation:

EvenFlo Pipes needs to sell more pipes in order to see an increase in sales. Assuming they are the producers, they will need to produce more pipes than they have been doing and this will need them to increase their production capacity.

To do so they would have to invest in fixed assets as these are what produce pipes. This is why the firm will have to purchase lumpy assets that will help them produce and sell more pipes.

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3 years ago
Randolph is a 30 percent partner in the RD Partnership. On January 1, RD distributes $15,000 cash and inventory with a fair valu
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Answer:

$2,000 capital loss

Explanation:

Randolph recognizes a $2,000 capital loss because RD distributes only cash and inventory and the adjusted bases of the property distributed is less than his basis in RD.

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