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Fofino [41]
2 years ago
6

he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shar

es during the year. There are no potential common shares outstanding. 2018 Feb. 28 Purchased 24,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 96,000 new shares. Dec. 31 Net income for 2018 is $1,590,000. 2019 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2019 is $1,590,000.
Business
1 answer:
nalin [4]2 years ago
6 0

Answer:

Consider the following calculation

Explanation:

1. Determine the 2018 EPS.

EPS = Net Income / Weighted Average number of shares

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares = 2,20 – (24x10/12) + (24x2/12) + (96x1/12)

= 2,52 Shares

EPS 2018 = $15,90 / 2,52 Shares

= $6.31 per share

2. Determine the 2019 EPS.

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

=[ 2,20 – 24 + 24 + 96 ] x 2 Stock Split

= 6,32 Shares

EPS 2019 = $15,90 / 6,32 Shares

= $2.52 per share

3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements?

Numerator

Net Income = $15,90

Denominator

Weighted Average number of shares

= 2,520 x 2 Stock split

= 5,04 Shares

EPS = $15,90 / 5,04

= $3.15 per share

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Katie, a single taxpayer, is a shareholder in Engineers One, a civil engineering company. This year, Katie’s share of net busine
scoray [572]

Answer:

A) Katie's maximum deduction is $200,000 x 20% = $40,000

But we must check that her deduction meets 3 requirements:

  1. cannot exceed 50% of her earned wages = $300,000 x 50% = $150,000 ✓ requirement met
  2. cannot exceed 25% of her earned wages + 2.5% of qualified property = ($300,000 x 25%) + ($150,000 x 2.5%) = $78,750 ✓ requirement met
  3. cannot exceed 20% of taxable income = $400,000 x 20% = $80,000 ✓ requirement met

B) Katie's maximum deduction is $400,000 x 20% = $80,000, but since her net business income is higher than her taxable income, she must calculate 20% x $350,000 (taxable income) = $70,000 (same as requirement 3 in previous answer)

3 0
2 years ago
Gabriel had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private
Darina [25.2K]

Gabriel had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use a survey with open-ended questions.

Space travel to private citizens:

On June 7, 2019, NASA said that beginning in 2020, it intends to start permitting commercial astronauts to go to the International Space Station using the SpaceX Crew Dragon and the Boeing Starliner spacecraft for public astronauts, with a planned daily cost of $35,000 USD.

Three paying clients and a retired NASA astronaut set off for the International Space Station. The trip is the first to visit the space station with only private persons aboard, and it is also the first time NASA has worked with other organizations to coordinate a space tourism visit.

Learn more about space travel to private citizens here:

brainly.com/question/14990057

#SPJ4

4 0
2 years ago
A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360
ExtremeBDS [4]

Answer:

$450

Explanation:

Calculation for the total interest due on the maturity date

Using this formula

Total interest=(Amount borrowed × Percentage of promissory note ×1/2)

Let plug in the formula

Total interest =$10,000 x 0.09x 1/2

Total interest= $450

Therefore the total interest due on the maturity date will be $450

6 0
3 years ago
What are the time durations for capacity planning, and which one provides the greatest value for strategic capacity planning?
Afina-wow [57]

Answer:

Short term, medium term and long term.

Explanation:

There are three time frames or durations for capacity planning. And these are short term, medium term and long term.

It should be understood that when the management of a company is considering the time frame or duration that will provide greatest value for strategic capacity planning, long term should be the one to be considered, because it is the best for the planning. Because it is the key determinant of the competitiveness of the organization.

7 0
2 years ago
The Italian government decides to stimulate the economy by sending checks worth $70 billion to Italian consumers If the governme
ludmilkaskok [199]

<u>Answer:</u>$35 Billion

<u>Explanation:</u>

Marginal propensity to consume means the raise in income of the consumer which the consumer is willing to pay for the goods and services. The proportional increase in income of the Italian people will increase their amount spent of goods. MPC differs based on the income of the consumers. Here the Italian government to increase economic activity checks have been send to the customers for spending.

The real GDP can be calculated as follows.

MPC = ($70 billion)(1.5) = $105 billion

GDP= $105 - $70 billion = $35 billion

5 0
3 years ago
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