Answer:
Option (B) is correct.
Explanation:
Given that,
Net income = 50,000
Preferred dividend = 2,000
Outstanding common stock:
= (40,000 × 2) + (10,000 × 6/12 × 2)
= 80,000 + 10,000
= 90,000
2016 basic earnings per share:
= (Net income - Preferred dividend) ÷ Outstanding common stock
= (50,000 - 2,000) ÷ 90,000
= 48,000 ÷ 90,000
= $0.53 per share
Therefore, the 2016 basic earnings per share is $0.53.
Answer:
The total amount of assets is 15,750.
Explanation:
Reproducing the trial balance below for clarity:
Account Title Debit Credit
Cash 12,500
Accounts Receivable 3,250
Accounts Payable 2,800
Common Stock 6,600
Retained Earnings 4,500
Service Revenue 7,450
Operating Expenses 5,100
Dividends 500
Total 21,350 21,350
Calculation of Total Assets:
Total assets = Cash + Accounts Receivable
= 12,500 + 3,250
= 15,750
Note that among the given accounts, accounts cash and accounts receivable are assets; accounts payable is a liability; common stock and retained earnings are part of the capital; service revenue is a form of revenue; while operating expenses and dividends are expenses.
An industry in which numerous price-taking firms produce identical products.
Answer:
C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.
Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.
In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.
First, we take into account the benefit and cost given in the problem. The benefit, which is $2 is a dollar lesser compared to the cost that would be incurred should the business opt to produce one more roast beef. This, of course, tells us that an additional roast beef will just impose an additional $1 cost. Thus, the answer should be the last choice.
