Answer:
A. $5.17
Explanation:
Use the following formula to calculate the Earnings per share
Earnings per share = ( Net Income - preferred Dividend ) / Weighted average numbers of outstanding shares
Where
Net Income = $370,000
Preferred Dividend = 10,000 x $100 x 6% = $60,000
Weighted average numbers of outstanding shares = 54,000 shares + ( 18,000 shares x 4/12 ) = 54,000 shares + 6,000 shares = 60,000 shares
Placing values in the formula
Earnings per share = ( $370,000 - $60,000 ) / 60,000 shares
Earnings per share = $5.17 per share
A $1000 bond quoted at 98 would be purchased or sold at a discount
D) Haven't been presented to the bank for payment but have been subtracted in the checkbook
That's not a question, but the proper answer should be a loan.
Answer:
Revenue/Income; Expenses
Explanation:
Profit or Loss is determined as the difference between the revenue made by a business (also known as its income), and the expenses spent in the process of generating that revenue.
If the difference is positive, the outcome is a profit. If the difference is negative, the outcome is a loss.
