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Thepotemich [5.8K]
4 years ago
7

8. Blue Cab Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,00

0 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The end-of-year market price of common stock was $13 while the average price for the year was $12. The company reported net income in the amount of $269,915 for 2021. What is the diluted earnings per share (rounded)
Business
1 answer:
JulijaS [17]4 years ago
4 0

Answer:

$4.10

Explanation:

total weighted stocks:

January 1 = 50,000 x 12/12 = 50,000

April 1 = 20,000 x 9/12 = 15,000

total = 65,000

diluted stocks = 5,000 - (5,000 x 10) / 12 = 833.33 ≈ 833

net income = $269,915

diluted EPS = net income - preferred dividends / (weighted common stocks + diluted stocks) = $269,915 / (65,000 + 833) = $4.0999 = $4.10

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Which of the following errors would cause the adjusted trial balance to be unequal? a. The adjustment for prepaid insurance was
zalisa [80]

Answer: Option (C) is correct.

Explanation:

There is a adjustment entry for depreciation of $3,545 but the amount that is debited as depreciation expense is different from the amount that is credited as accumulated depreciation.

Depreciation Expense A/C     Dr.     $3,454

To Accumulated Depreciation                          $3,545

This will lead to an unequal adjusted trial balance.

Option 'A' and 'B' has no effect on the adjusted trail balance to be unequal because whole transaction is omitted.

Option 'D' also has no effect on adjusted trail balance because the debit and credit amount will still match.

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3 years ago
When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify: Company
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Answer:

Company strengths and weaknesses

Explanation:

SWOT analysis is a strategic technique that help to identify company´s risk or weakness and how to overcome with it´s strength and opportunity. It can be used at any platform. It is useful analysis for future course of action that help the company to grow and prepare itself from any possible threat.

SWOT stands for Stength, Weakness, opportunity and threat.

6 0
3 years ago
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
4 years ago
True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is
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A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

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2 years ago
Countries with free market economies in which property rights are protected tend to have _____ than command economies or economi
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</span><span>The reason is the lack of infrastructure and supporting business in primitive or undeveloped economies, which may lead to situation in which is more costly to do business.  </span>
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