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PtichkaEL [24]
3 years ago
8

All of the following statements are true regarding earnings per common share (EPS) except:

Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

d) EPS cannot be calculated if a company has no preferred stock.

Explanation:

The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares)  is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.

Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.

As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.

Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.

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Perpetual Inventory Using LIFOBeginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:Inve
Ivan

Answer:

<u>Date                                      Purchases                    Sales        </u>

May 1                                1,550 units at $44

May 10                                720 units at $45

May 12                                                                    1,200 units

COGS                                                                  (720 x $45 = $32,400)

COGS                                                                  (480 x $44 = $21,120)

TOTAL COGS FOR MAY 12 SALE                       = $53,520

Inventory after sale        1,070 units at $44

May 20                             1,200 units at $48

May 14                                                                      830 units

COGS                                                                  (830 x $48 = $39,840)

TOTAL COGS FOR MAY 14 SALE                       = $39,840

Inventory after sale         1,070 units at $44

                                          370 units at $48

May 31                                                                    1,000 units

COGS                                                                  (370 x $48 = $17,760)

COGS                                                                  (630 x $44 = $27,720)

TOTAL COGS FOR MAY 12 SALE                       = $45,480

Inventory after sale        440 units at $44

Under LIFO (last in, first out), the cost of goods sold is determined using the price of the last units purchased, which means that the most recent (or updated) price is used to calculate COGS.

7 0
3 years ago
Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regardi
german

Answer:

$55,300

Explanation:

Calculation to determine what The net income for December would be:

NET INCOME FOR DECEMBER

Revenue $327,000

Less cost of goods sold ($228,900)

(70%*$327,000)

Gross profit $98,100

($327,000-$228,900)

Less Depreciation ($17,400)

Less Operating expenses ($25,400)

Net Income $55,300

Therefore The net income for December would be:55,300

3 0
3 years ago
A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce e
Svetlanka [38]

Answer:

Company A

The number of items that should be produced in each run to minimize total costs of production and storage is:

= 22,000 units

Explanation:

a) Data and Calculations:

Total annual demand = 550,000 units

Cost per production run = $330

Cost per unit = $5

Storage (holding) cost per item = $0.75

The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula

= square root of (2 * 550,000 * $330)/$0.75

= square root of $363,000,000/$0.75

= square root of 484,000,000

= 22,000 units

6 0
3 years ago
Emmett, an agent for Fridley, signs an agreement with Grover on Fridley's behalf but neglects to tell Fridley that the agreement
Mariulka [41]

Answer:

Option A. Liable, because notice to Emmett is notice to Fridley.

Explanation:

The reason is that the principle is liable for the outcome of the Emmett actions in the principle's behalf. So it is clear that Fridley is liable. The agent have to work in the best interest of its principal which means that the failure to notify the additional tax liability to Fridley was part of agent's fiduciary duty. This means that the principle can sue its agent for the consequences of not placing the sufficient care to its principle.

The Fridley is also responsible because Emmett is acting as Fridley which means the notice to Emmett is actually notice to Fridley.

6 0
3 years ago
Read 2 more answers
What should a human resources manager focus on when determining an organization's long-term staffing needs
Mkey [24]

What human resources manager focus on when determining an organization's long-term staffing needs is the organization's vision and strategic plan.

<h3>What is Strategic planning?</h3>

Strategic planning  can be regarded as the process where an organizational leaders determine their vision.

This helps the leader to prepare  for the future as well as identify their goals and objectives for the organization.

Learn more about Strategic planning at;

brainly.com/question/24462624

7 0
2 years ago
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