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3 years ago

For the year ended December 31, 2021, Norstar Industries reported net income of $655,000.

Business

1 answer:

iragen [17]3 years ago

7 0

Answer:

Earnings per share = $0.64

Explanation:

To calculate the Earnings per share, we first need to compute weighted average number of shares:

Jan.1: 900,000 * (12/12) = 900,000 * 1.05 = 945,000

Apr.30: 60,000 * (8/12) = 40,000 * 1.05 = 42,000

Jun.1: 72,000 * (7/12) = <u>42,000</u>

Weighted Average No. of Shares Outstanding = <u>1,029,000</u>

Note: We multiplied by 1.05 factors on Jan.1 and Apr.30 to account for 5% declared and distribution of a stock dividend.

Earnings Per Share = <u> Net Income </u>

Weighted Average No.of Shares Outstanding

Earnings Per Share = <u>655,000</u>

1,029,000

Earnings Per Share = $0.64

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A firm has net income of $197,400, a return on assets of 8.4 percent, and a debt-equity ratio of .72. What is the return on equi

Karolina [17]

Answer:

C 14.45

Explanation:

Return on equity = .084 ×(1 + .72) = .1445, or 14.45 percent

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3 years ago

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms,.

nikitadnepr [17]

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.

<h3>What is a monopolistic competition?</h3>

A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants

A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.

Here are the options:

A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.

OC. they will wish to cooperate to make decisions about what quantity to produce.

O D. they will be unable to earn higher-than-normal profits in the long run.

To learn more about monopolistic competition, please check: brainly.com/question/21052250

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6 0

1 year ago

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000

Dima020 [189]

Answer:

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

Explanation:

Giving the following information:

At the beginning of a year, a company predicts total direct materials costs of $1,020,000 and total overhead costs of $1,220,000.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,220,000/1,020,000

Predetermined manufacturing overhead rate= $1.961 per direct material dollar

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3 years ago

Consider this problem: Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil an

astraxan [27]

Answer:

The maximum time guaranteed = 19.04 minutes.

Explanation:

From the given problem data, we have:

Let Y be the random variable which follows the normal distribution.

So,

Y ~ N(u = 15, SD = 2.4

Where, u = mean and SD = Standard Deviation

Let the maximum time guaranteed is = M

So,

P (Y > M) = 0.05 equation 1

Convert this equation 1 into standard normal variable, that is,

P(Y> M) = 0.05

1 - P(Y $\leq$ M) = 0.05

P(Y $\leq$ M) = 1 - 0.05

P(Y $\leq$ M) = 0.95

P $(\frac{Y-u}{SD} \leq \frac{M-u}{SD} )$ = 0.95

P ( Z $\leq \frac{M - 15}{2.4}$ ) = 0.95 Equation 2

From the equation 2, we have,

$\frac{M-15}{2.4}$ = 1.644853627

1.644853627 value is from using the function of Excel

( =NORSINV(0.95)) = 1.644853627

So,

M = 1.644853627 + 2.4 + 15

M = 19.04

Hence, the maximum time guaranteed = 19.04 minutes.

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3 years ago

The post-closing trial balance consists only of Group of answer choices Asset and liability accounts. Nominal accounts. Revenue

mariarad [96]

Answer:

Permanent accounts

Explanation:

The post-closing trial balance consists only of permanent accounts. These permanent accounts are assets, liabilities, and equity. Permanent accounts are not closed when an accounting period ends. Temporary accounts (revenue, expense, dividend) on the other hand is a direct opposite as they are closed or cleared to zero when an accounting period ends.

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3 years ago