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Annette [7]
3 years ago
15

On January 1, 2021, Gridley Corporation had 375000 shares of its $2 par value common stock outstanding. On March 1, Gridley sold

an additional 750000 shares on the open market at $20 per share. Gridley issued a 20% stock dividend on May 1. On August 1, Gridley purchased 420000 shares and immediately retired the stock. On November 1, 600000 shares were sold for $25 per share. What is the weighted-average number of shares outstanding for 2021
Business
1 answer:
lesya [120]3 years ago
3 0

Answer:

1,075,000

Explanation:

Weighted average numbers of share account the weightage of outstanding numbers of the share in the year based on the outstanding period.

Outstanding Balances

375,000 share  for 2 months

Addition of new 750000 shares on March 1

1,125,000  shares (375,000+ 750,000) for 2 months

Stock dividend of 20% ( 1,125,000 x 20% = 225,000) on May 1

1,350,000  shares (1,125,000+ 225,000) for 3 months

Retirement of 420,000 Shares on August 1

930,000  shares (1,350,000 - 420,000) for 3 months

Issuance of 600000 shares on November 1

1530,000  shares (930,000 - 600,000) for 2 months

Schedule for weighted average numbers of shares is attached please find it.

Download pdf
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Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry. PCC owes Mitsubishi Heavy Industry 500 million ye
Illusion [34]

Answer:

Explanation:

a)

In  the case of forwarding hedge:

The future dollar cost will be = FX receiveable ÷ Foward exchange rate

= 500 million yen ÷ 110 yen/dollar

= $4.55 million

For money market hedge:

Present value of yen payable = 500 \ yen \div (1+ \dfrac{5}{100})

= \dfrac{500 \ yen }{1.06}

= 476.20 million yen

PCC would convert dollars to yens at the spot market rate and borrow yen such that it would get 500 million yen at maturity(i.e after one year)  for Mitsubishi to receive it.

Dollars needed to get these yen = 476.30 yen  ÷ 124 yen/dollar

= $3.84 million

Future Value of these dollars (for comparison with the foward market hedge) = $3.84 × (1 + 0.08)

= $4.15 million

Hence, the money market hedge is better as the dollar cost is lower than the forward market hedge to meet the obligation.

b)

On the maturity date, the spot rate is 110 yen/dollar  

Ad the strike price = 0.0081 /dollar

It is better for the company to go for the strike price due to the fact that it has a lower rate than the spot rate.

Now;

The premium amount = 500000000 yen × 0.014 dollar / yen

= 70000 dollars

However; the Future dollar-cost payable = 500000000 yen × 0.0081 dollar /yen

= 4050000 dollars

By applying option hedge, the total dollar cost required to meet the obligation = (4050000 + 70000) dollars

= 4120000 dollars

c)

The dollar cost needed from the option hedge required to matching the forward hedge is determined by subtracting it from the premium amount:

Thus;

for option hedge, dollar cost needed = (4550000 - 70000) dollars

= 4480000 dollars

The required future spot rate = 500000000/4480000

= 111.61 yen/dollar

As a result, at the future spot rate of 111.61 yen/dollar, PCC will be unconcerned about and indifferent about the option or forward hedge because the future dollar cost of meeting the obligation will be the same.

3 0
2 years ago
Regina Corp. is a property and casualty insurance company in its third year of operations and has a net loss of $100,000. Regina
sergejj [24]

Answer:

$24,000

Explanation:

Total Taxable income of first and second year = $10,000 + $30,000 = $40,000

Net loss in 3rd year = $100,000  

Net Operating loss carry back = Regina Taxable income Total of first and second year of operations

Net Operating loss carry back = $40,000

Net Operating loss Carry forwards = Net loss - Net Operating loss carry back

Net Operating loss carry forward = $100,000 - $40,000

Net Operating loss carry forward = $60,000

Income tax rate = 40%

Income tax benefit from the Net Operating loss carry forward = Net Operating loss carry forward * Income tax rate

Income tax benefit from the Net Operating loss carry forward = $60,000 * 40%  

Income tax benefit from the Net Operating loss carry forward = $24,000 .

6 0
3 years ago
Stacey and Andrew each own one-half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Para
Fittoniya [83]

Answer:

Option 3

Explanation:

Earnings & profits (E&P) is the measure of a corporation’s economic ability to pay dividends to its shareholders. An up-to-date E&P calculation is important for many corporate transactions, including determining whether a distribution to shareholders is a taxable dividend.

The E&P allocated to Andrew's distribution

= 160,000 * 150,000/(350,000+150,000)

= 160,000 * 150,000/500,000

= 48,000

Option C

8 0
3 years ago
Which is an easy-to-read, monthly statement that clearly lists medicare claims information?.
IgorC [24]

An easy-to-read, monthly statement, that clearly lists medicare claims information is a Medicare summary notice.

<h3>What is a Medicare summary notice?</h3>

MSN is a statement received by the people with Original Medicare recipients every three months in the mail for services covered by Medicare Part A and Part B.

It is a system that notifies consumers about  Medicare benefit decisions. You will not receive an MSN for that 3-month period if you do not receive any services or emergency aid during that time.

This notification might assist you in keeping track of your and in expenses and ensuring that you were correctly invoiced for the treatments you experienced.

It also helps to compare the information on your notification with the healthcare providers', statements, and receipts.

Learn more about the Medicare summary notice, here:

brainly.com/question/24225728

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8 0
2 years ago
Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $
Tcecarenko [31]

Answer:

Applied Overhead is higher than actual overhead. Hence, manufacturing overhead is $ 4,000

Explanation:

Given data:

estimated overhead = $2,40,000

Labor cost =$2,80,000

Direct labor cost = $3,00,000

Overhead\  rate = \frac{Estimated\  Overhead}{Estimated\ direct\ labor\ cost}

                        = \frac{2,40,000}{3,00,000}      

                         = $ 0.80 per direct labor cost      

Applied\ Overhead = Actual\  Labor\ cost\times Overhead\ rate      

                             = $ 2,80,000\times $ 0.80 Per direct labor cost  

                             =$ 2,24,000        

Actual Overhead cost = $ 2,20,000        

Applied Overhead is more than actual overhead. Hence, manufacturing overhead is $ 4,000.

6 0
3 years ago
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