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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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DochEvi [55]

Answer:

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3 0
2 years ago
McBride’s Dairy has 200 gallons of heavy cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the spl
Katyanochek1 [597]

Answer:

Cream $560

Explanation:

Units Selling price Sales value Percentage of sales value Allocated cost

Cream200 15    3,000    3,000/5,400 = 56%                1,000 x 56% = $560

Skimmed

milk600 4 2,400 2,400/5,400 = 44% 1,000 x 44% = $440

Total                   $5,400 100% $1,000

Therefore the  amount  of joint cost allocated to cream  is  $560

3 0
3 years ago
A retail operation has an average gross margin of 35%. If the average monthly sales for the store is $200,000.00, what is the co
GarryVolchara [31]

Answer:

COGS= $130,000

Explanation:

Giving the following information:

A retail operation has an average gross margin of 35%.

Sales= $200,000.00

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

Gross margin= sales - COGS

COGS= sales - gross margin

COGS= 200,000 - (200,000*0.35)

COGS= $130,000

8 0
3 years ago
THIS IS FOR CULINARY
enyata [817]

Answer:

D. layoffs

Explanation:

A contingency plan is an alternative plan of action in case of unexpected outcomes. It is devised and kept in place to be implemented in bad times.  A contingency plan is a sort of a  risk mitigation plan to help the business navigate through a bad situation efficiently.

A contingency plan for labor include measures that can help a business overcome tough seasons.  The business may need to layoff some employees to save on labor in times of economic downtime

3 0
3 years ago
Ben and Mildred's Stables used two different independent variables (trainer hours and number of? horses) in two different equati
liubo4ka [24]

Answer:

the estimated total cost for the coming year is $12,227.60

Explanation:

The computation of the estimated total cost is shown below:

y

= Constant coefficient + independent variable coefficient × number of horses

= $5,240.20 + $22.54 × 310 horses

= $5,240.20 + $6,987.40

= $12,227.60

This is the answer but not the same is to be given in the options

hence, the estimated total cost for the coming year is $12,227.60

7 0
3 years ago
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