Answer:
$2.73
Explanation:
<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>
where,
Earnings Attributed to Common Stockholders = $420,000
and
Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000
therefore,
Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73
Conclusion
Rudyard's diluted EPS is $2.73
Answer:
Warranty liability $2,128
Explanation:
680 phones sold x 5% x $76 per repaired phone = $2,584 total warranty liability
6 phones were repaired during the year x $76 = $456
remaining warranty liability = total estimated liability - money spent repairing phones during the year = $2,584 - $456 = $2,128
total outstanding warranty liability = $2,128
Since phone warranties last less than a year, the full amount should be recorded under current liabilities.
Answer:
That statement is true.
Explanation:
Start ups tends to have overwhelmingly lesser capital compared to large/established firms. This means that The Large firms will be able to outperform the start ups in terms of marketing , advertising, and production efficiency.
This will make the start ups' product became less known and more expensive in the market.
Because of this, they tend to focus on the acquisition of intellectual property.
When a start up acquire the right of intellectual property, larger companies could not legally create a similar product and compete with the start up directly.
This will make the start up able to sell their products without having to worry about being outperformed by the larger companies.
Answer:
Cost of land = $220,400
Cost of building = $0
Explanation:
The computation of the land and the cost of the new building is shown below:
Cost of land = Purchase price + Real estate commissions + Legal fees + Expenses of clearing the land + Expenses to remove old building
= $194,000 + $16,900 + $2,700 + $3,900 + $2,900
= $220,400
The cost of the new building would be zero as all the costs are allocated to the cost of the land. So, no cost is allocated to the cost of the new building
Answer:
a. 12 times
b. 30.42 days
Explanation:
Data provided in the question
Sales = $4,560,000
Average account receivable = $380,000
So, The computation is shown below:
a. Account receivable turnover ratio is
= Sales ÷ average account receivable (net)
= $4,560,000 ÷ $380,000
= 12 times
b. Now the number of days sales in receivable is
= Total number of days in a year ÷ account receivable turnover ratio
= 365 days ÷ 12 times
= 30.42 days
