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oksian1 [2.3K]
3 years ago
14

Common stock, $1 par value Shares outstanding, 1/1/2021 60,000 2-for-1 stock split, 4/1/2021 Shares issued, 7/1/2021 30,000 Pref

erred stock, $10 par value, 6% cumulative Shares outstanding, 1/1/2021 12,000 How many shares should Tb use to calculate 2021 basic earnings per share?
Business
2 answers:
Nuetrik [128]3 years ago
6 0

Answer:

75,000 shares

Explanation:

earnings per share (EPS) = (net income - preferred dividends) / weighted average shares outstanding

  • net income = ???
  • preferred dividends = $10 x 6% x 12,000 = $7,200
  • weighted average shares outstanding = [60,000 + (120,000 x 9/12)] / 2 = (60,000 + 90,000) / 2 = 75,000 shares

Since the shares split to 120,000 on April, their relative weight at the end of the year is 9/12 x 120,000 = 90,000. That is why the average shares = (beginning number of outstanding shares + ending number of outstanding shares) / 2 = 75,000

Ganezh [65]3 years ago
6 0

Answer:

120,000 shares

Explanation:

We will use weighted average numbers of outstanding shares.

Outstanding numbers of shares are those share which are issued in the market by the company and still being traded in the market. Treasury stock is excluded from the total issued share to calculate the total outstanding numbers of share.

Stock split increase the numbers of shares with a specific given ratio but the common equity value remains same that's why the par value of the share decreases with respective ratio.

4/1/2021

Shares after stock split

Outstanding numbers of shares = 60,000 shares x 2 / 1 = 120,000

7/1/2021

Shares after issuance

Outstanding numbers of shares = 120,000 shares + 30,000 shares = 150,000 shares

Now calculate the weighted average numbers of shares

1/1/2021-3/31/2021     60,000 x 3/12 = 15,000

4/1/2021-6/30/2021   120,000 x 3/12 = 30,000

7/1/2021-12/31/2021   150,000 x 6/12 = <u>75,000</u>

Weighted average outstanding shares <u>120,000</u>  

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Its real GDP will be $1280.

According to the data provided here, we have that;

Production of 220 pounds of jelly beans at $5 means = 220 x 5 = $1100

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As production is an investment (I) so,

real GDP = $1100 + $180 = $1280

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4 0
1 year ago
On September 1, 2012, Valdez Company reacquired 16,000 shares of its $10 par value common stock for $15 per share. Valdez uses t
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Answer:

d. Treasury Stock for $240,000

Explanation:

The journal entry for re-acquisition of the stock under the cost method is shown below:

Treasury stock A/c Dr $240,000

    To Cash A/c                         $240,000

(Being the stock are reacquired for cash)

The $240,000 amount should be come from

= Number of shares × common stock per share

= 16,000 shares × $15

= $240,000

Since the stock is reacquired so we used the treasury stock account instead of the common stock account

7 0
3 years ago
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the ta
ycow [4]

Answer:

The net operating cashflows are 18,876 dollars.

Explanation:

Operating cashflows are cashflows which an entity generates from it core operations. In other words cash flow related to investment and finance activities do not form part of an entity operaing cashflows.

So in this example interest will not be part of operating cashflows.

For more details please refer to below given calculations.

OCF

Sales       46,200

Cost         (23,100)

Tax            (4,224) (W-1)

OCF          18,876

(W-1)  Calculating profit to find tax paid

(46,200-23,100-2,200-1,700)*22%

5 0
3 years ago
A company purchased inventory on January 1, 20X2, for $600,000, and uses the FIFO method. On December 31, 20X2, the inventory ha
bagirrra123 [75]

Answer:

See below

Explanation:

It is to be noted that under IFR, inventories are carried at a lower of cost or net realizable value, which is $550,000 in this scenario.

Also, under the United states GAAP, inventories are carried at a lower of cost or market . Here, the replacement cost of $525,000 would be used because it is below NRV and its equal to the difference between NRV and normal profit margin.

7 0
2 years ago
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Nesterboy [21]

Answer:

A. power distance

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To avoid offensive behavior in multinational businesses, it is necessary to have multicultural skills that include ethics, respect and knowledge of a new culture and its rules.

8 0
3 years ago
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