Answer:
$360,000
Explanation:
Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.
An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.
The loss reported in May will be reported for that quarter in June.
Creation and execution of goals by the management team, defined by available resources and existing conditions in and out of the company.
Answer:
pooled interdependence.
Explanation:
The single crop is a company with three different division. Three division who work independently and do not interact with each other but work towards the betterment of the whole company can be described as pooled interdependence. Pooled interdependence is a way in which companies operated by designing different department that works independently towards a common goal.
Answer:
The EPS is approximately:
it can be any of them:
- if preferred dividends = $4,800,000, then EPS = $0.40 (option A)
- if preferred dividends = $720,000, then EPS = $1.76 (option B)
- if preferred dividends = $0, then EPS = $2 (option D)
EPS = (net income - preferred dividends) / outstanding shares = ($6,000,000 - preferred dividends) / 3,000,000 shares
The Price/Earnings ratio is approximately:
- if EPS = $0.40, then PE ratio = 12.5 (option D)
- if EPS = $1.76, then PE ratio = 2.84 (option C)
- if EPS = $2, then PE ratio = 2.5 (option B)
Price/earnings (PE) ratio = share price / EPS = $5 / EPS
EPS cannot be $1.80, since PE ratio = 2.78 and that is not an option.
Some companies have a higher share price for the same level of earnings. Why?
Some stocks like Amazon have a very low EPS, form any years its EPS was very low bu its stock price kept rising. The stock price is based mostly on potential future earnings, not current earnings. A company that is being liquidated might have a high EPS, but a very low stock price since it will stop operating soon.
