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olchik [2.2K]
3 years ago
12

Porter Corporation owns all 40,000 shares of the common stock of Street, Inc. Porter has 80,000 shares of its own common stock o

utstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $264,000 while Street reports $236,000. Annual amortization of $12,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $48,000 for Porter and $36,000 for Street. Porter’s bonds can be converted into 8,000 shares of common stock; Street’s bonds can be converted into 10,000 shares. Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement?
Business
1 answer:
damaskus [11]3 years ago
6 0

Answer: 5.05 per share

Explanation:

.Porter. Street

$,000 $,000

Net income. 264. 236

Less amortization 0. 12

Less Interest. 48. 36

Total. 216. 188

*=. 216+188= 404/80000shasres

=5.05

The parents company Peter fully owns all the share of street which means it takes the whole.profit of street, The consolidation sechdule only takes cognizance of the parents company shares in calculating earning per share and the subsidiary share which is Street it's treated as an investment. The convertible shares are also not taking into consideration since they have not been convert.

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Which of these is an example of an inelastic good?
pishuonlain [190]

Answer:

A. Medicine

Explanation:

Inelastic good is a product whose demand does not fluctuate with price changes. It means the demand for the good remains constant even if prices increase or decrease. The term inelastic symbolizes the demand for the good is static.

Medicine has an inelastic demand. Patients need medication regardless of prevailing prices. An increase or decrease in prices of medicines does not influence the demand. The term inelastic contrast elastic demand, which is the demand that varies with changes in prices.

6 0
3 years ago
A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume t
Vinil7 [7]

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

8 0
3 years ago
What is the definition of excellent customer service?
stiks02 [169]
Good customer service means having thorough  knowledge and having a positive attitude.
7 0
3 years ago
What is the best advice for concluding your presentation?
Lilit [14]

The best advice for concluding a presentation is by having to review major points as it is essential to be able to deliver your main purpose or the important information you want to deliver to your audience and in the same time, the individual should focus on what he or she wants for his or her listeners to think, remember and even do.

8 0
3 years ago
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:Net Sales $440,000
siniylev [52]

Answer:

Assets turnover ratio= 1.64 times

Explanation:

The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets

Assets turnover ratio = net sales / Average assets

<em>Asset at the beginning of year 2016</em>

=26,000  + 56,000 +    79,000 +     8,000  + 180,000 = 349 ,000

<em>Asset at the end of year 2016</em>

$28,000  + 58,000 +    76,000  +  14,000 +  11,000= 187 ,000

Average assets = Opening value of asset+ closing value of assets/2

= 349 ,000 + 187 ,000= 268 ,000

Assets turnover ratio = net sales / Average assets

=440000/268,000= 1.64 times

Assets turnover ratio= 1.64 times

Total assets =

3 0
3 years ago
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