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Mamont248 [21]
3 years ago
15

Net income was $240,000 for the year. Throughout the year the company had outstanding 12,000 shares of 6%, $50 par value preferr

ed stock and 75,000 shares of common stock. Basic earnings per share of common stock for the year were:
Business
2 answers:
bekas [8.4K]3 years ago
4 0

Answer:

Basic earnings per share of common stock for the year were 272 cents

Explanation:

Basic earnings per share = Earnings Attributable to Shareholders of Common Stock/Weighted Average Number of Common Stock in Issue during the year

<u>Calculation of Earnings Attributable to Shareholders of Common Stock :</u>

Net income for the year                                                               $240,000

Preference Dividends on Preferred Stock (12,000× $50×6%)   ($36,000)

Earnings Attributable to Shareholders of Common Stock         $204,000

Therefore Basic earnings per share = $ 204,000/ 75,000 shares of common stock

                                                            = 272 cents

WITCHER [35]3 years ago
4 0

Answer: Earning per share of common stock for the year = $2.72

Explanation:

Giving the following ;

Net income for the year = $240,000

Number of shares(preferred stock) outstanding = 12,000

Par value(preferred stock) = $50

Number of shares(common stock) outstanding= 75,000

Basic earning per share of common stock is given by;

Earning per share = Net income - preferred dividend) ÷ weighted average of common shares outstanding during the period

Dividend on preferred stock = 12000 × $50 × 0.06 = $36,000

Earning per share = $(240,000 - 36,000) ÷ 75,000

Earning per share = $204,000 ÷ 75,000 = $2.72

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. Based on the following data, Accounts payable…………………………………………………..... $62,000 Accounts receivable…………………………………………………. 100,000
Temka [501]

Answer:  $428,000

Explanation:

Given that,

Accounts payable = $62,000

Accounts receivable = 100,000

Cash = 30,000

Inventory = 138,000

Land = 160,000

Common Stock = 200,000

Revenue = 80,000

Dividends = 56,000

Expenses = 40,000

Total assets = Accounts receivable + Cash + Inventory + Land

                     = 100,000 + 30,000 +  138,000 + 160,000

                     = $428,000

3 0
3 years ago
Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Requ
RUDIKE [14]

Answer:

Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States

Transfer Pricing:

a) The best transfer pricing method in this case is the cost plus method.  This gives the transfer price as Cost + 50%.

b) The appropriate transfer price should be $3 ($2 x 1.5).

Explanation:

Transfer pricing arises when controlled entities set prices for exchange of goods and services.  When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen.  It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.

There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price.  According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:

a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)

b) Resale price method

c) Cost plus method

d) Transactional net margin method (TNMM)

e) Transactional profit split method.

7 0
3 years ago
Eric sees this new assignment as an increase in​ ________, or an obligation or expectation for him to perform at a new level.
Triss [41]
The answer will be Responsibility Correct
7 0
3 years ago
Zoom Enterprises expects that one year from now it will pay a total dividend of $ 5.0 million and repurchase $ 5.0 million worth
uranmaximum [27]

Answer:

Consider the following calculations

Explanation:

The price per share is computed as shown below:

Present value of equity is computed as follows:

= $ 10 million / 0.13

= $76,923,076.92

Now we shall divide it by the number of shares to get the price per share

= $76,923,076.92 / 5,000,000

= $ 15.38 per share

Feel free to ask in case of any query relating to this question

5 0
3 years ago
Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrus
Alborosie

Answer:

Target costing

Explanation:

-High-low pricing is when companies initially establish a high price for a product and then, they decrease it when people are less willing to buy it.

-Everyday low pricing is when companies offer low prices on their products all the time.

-Cost-plus pricing is when companies determine the cost of the product and add the profit margin they need to establish the price of the product.

-Target costing is when companies establish a target cost for the product by taking the price and subtracting the margin they expect from it.

-Competition-based pricing is when companies use the price the competitors have for the same product to establish the price.

According to this, the answer is that the situation exemplifies target costing.

3 0
3 years ago
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