Answer:
Earnings per share
= <u>Net income - Preferred dividend </u>
No of common stocks outstanding
= <u>$1,500,000 - 0</u>
1,000,000 shares
= $1.50 per share
P/E ratio = <u>Market price per share</u>
Earnings per share
15 = <u>Market price per share</u>
$1.50
Market price per share = 15 x $1.50
= $22.50
Explanation:
In this question, there is need to calculate earnings per share by dividing net income by number of common stocks outstanding. Thereafter, we will apply P/E ratio formula, where P/E ratio and earnings per share are known. We will make market price per share the subject of the formula.
Answer:
The match is as follow
1. Posting ⇒ E. Copying data from the journal to the ledger
2. Expense ⇒ A. The cost of operating a business; a decrease in stockholders' equity
3. Debit ⇒ K. Left side of an account
4. Trial Balance ⇒ L. The book of accounts and their balances
5. Equity ⇒ F. Assets - Liabilities
6. Net Income ⇒ G. Revenues - Expenses
7. Receivable ⇒ B. Always an asset
8. Chart of Accounts ⇒ H. Lists all accounts with their balances
9. Payable ⇒ I. Always a liability
10. Journal ⇒ D. Lists a company's accounts and account numbers (no account balances in this item)
11. Normal Balance ⇒ C. Side of an account where increases are recorded
12. Ledger ⇒ J. Record of transactions
The entrepreneurial qualities that helps any businessman to be successful in his or her business are as follows:
1) The quality of goods and services should be maintained.
2) The information regarding the product needs to be disseminated to the public.
3) Finance and funding should be taken care of to avoid illegal profits and bankruptcy.
4) True and fair means of practices should be followed.
5) The entrepreneur should be accountable and responsible for the services provided by him.
Answer:
$24,160 favorable
Explanation:
The computation of the total contribution margin sales volume variance is given below:
The Budgeted contribution margin per pound of MT is
= $40 - $20
= $20 per pound
Now the budgeted contribution margin per pound of ET is
= $60 - $30
= $24 per pound
MT's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (3960 - 4000) × $20
= $800 Unfavorable
ET's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (5,040 - 4000) × $24
= $24,960 favorable
Now the total contribution margin sales volume is
= $800 unfavorable + $24,960 favorable
= $24,160 favorable
