1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ankoles [38]
2 years ago
6

Purple Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000

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 average market price of common stock was $12. The company reported net income in the amount of $269,915 for 2018. What is the basic earnings per share (rounded)?
Business
1 answer:
Sloan [31]2 years ago
5 0

Answer:

The basic earnings per share is $4.15

Explanation:

Earning Per Share : Earning Per share shows a ratio between net income and weighted average outstanding shares.

In mathematically,

Earning Per Share = Net income ÷ weighted average outstanding shares

where,

Net income = $269,915

And, On Jan 1, 2018 the share is 50,000 whereas on April, 2018 the shares is 20,000. But we have to calculated for the December period. From April to December there are 9 months.

So, April 2018 shares = 20,000 × 9 ÷ 12 months = 15,000 shares

Hence, total weighted average outstanding shares is  

= 50,000 +15,000

= 65,000 shares

Now, apply the above formula for computation

=  $269,915 ÷ 65,000 shares

= $4.15 per share

Thus,  the basic earnings per share is $4.15

You might be interested in
You want a new cell phone. Which of these sources would be the most dependable?
ahrayia [7]
I would say that b is the best answer
3 0
2 years ago
Read 2 more answers
3. A los factores productivos, dentro del proceso<br> de producción, también se conoce como..
emmainna [20.7K]

Answer:

El capital es uno de los tres factores de producción, se puede dividir en capital físico y capital humano, el capital físico son todas las máquinas y recursos que utiliza en su negocio. El capital humano se refiere a todos los conocimientos adquiridos.

6 0
2 years ago
Concrete terms can never be used in an abstract or symbolic way.
dem82 [27]

Answer:

The statement is FALSE.

Explanation:

Concrete terms are referred to those objects and events that are available to the five senses of human. However, these terms can be used in an abstract or symbolic way. A word is concrete in a specific context, but becomes a symbol of an abstract idea in a different context depending on the author's intent. This is possible because that symbol is not used in a literal meaning, but is used to represent an idea which usually means something else. Henche the given statement is wrong.

4 0
3 years ago
Read 2 more answers
If you put up $21,000 today in exchange for a 8.25 percent, 14-year annuity, what will the annual cash flow be
BartSMP [9]

Answer:

$2,584.34

Explanation:

we can use the present value of an ordinary formula to calculate this:

present value = annual payment x annuity factor

  • present value = $21,000
  • PV annuity factor, 8.25%, 14 periods = 8.12586

annual payment = present value / annuity factor = $21,000 / 8.12586 = $2,584.34

When the interest rates are not whole number, e.g. 4%, instead of trying to use a present value annuity table, you should look online for annuity calculators that will calculate the annuity factors for you.

8 0
2 years ago
Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data
jek_recluse [69]

Answer:

Lexigraphic Printing Company

1. Differential Analysis as of April 30:

                                                 Old Machine   New Machine    Difference

Annual revenue                              $74,200          $74,200

Annual depreciation (straight-line)    8,900             19,950  

Annual manufacturing

costs, excluding depreciation        23,600              6,900

Annual nonmanufacturing

operating expenses                         6,100                6,100

Total expenses                            $38,600           $32,950

Annual net income                      $35,600           $41,250         $5,650

Net income for 6 six years        $213,600        $247,500       $33,900

2. Other factors that should be considered are:

B. What effect does the federal income tax have on the decision?

C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?

E. Are there any improvements in the quality of work turned out by the new machine?

Explanation:

a) Dat and Calculations:

Old Machine

Cost of machine, 10-year life $89,000

Annual depreciation (straight-line) 8,900

Annual manufacturing costs, excluding depreciation 23,600

Annual nonmanufacturing operating expenses 6,100

Annual revenue 74,200

Current estimated selling price of machine 29,700

New Machine

Purchase price of machine, six-year life $119,700

Annual depreciation (straight-line) 19,950

Estimated annual manufacturing costs, excluding depreciation 6,900

Annual nonmanufacturing operating expenses 6,100

Annual revenue 74,200

Differential Analysis as of April 30:

                                                 Old Machine   New Machine    Difference

Annual revenue                              $74,200          $74,200

Annual depreciation (straight-line)    8,900             19,950  

Annual manufacturing

costs, excluding depreciation        23,600              6,900

Annual nonmanufacturing

operating expenses                         6,100                6,100

Total expenses                            $38,600           $32,950

Annual net income                      $35,600           $41,250         $5,650

Net income for 6 six years        $213,600        $247,500       $33,900

4 0
2 years ago
Other questions:
  • A single taxpayer earns $500,000 of salary income and $20,000 of interest income in 2019. The taxpayer is a material participant
    7·2 answers
  • On January 2, Boulder Co. assigned its patent to Castle Co. for royalties of 10% of patent-related sales. The assignment is for
    12·1 answer
  • The U.S. Treasury used the First Bank of the United States for all of the following purposes except
    6·1 answer
  • Jake is in the stands at a football game with his girlfriend. He decides that he needs to ask her something very personal, so he
    8·2 answers
  • 1) Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic i
    12·1 answer
  • Which of the following is NOT a type of funded retention?a: reservesB: self-insurancec: captivesd. credite: all of the above
    7·1 answer
  • Jackie has determined some possible careers that would suit her include being a photographer, a graphic artist, a web designer,
    6·2 answers
  • + An e-commerce company spends a lot of money on product replacement, as customers often complain about the products they receiv
    12·1 answer
  • Janet has almost finished painting a neighbor's house, at which time she'll be paid $2,000. The fact that she is increasingly un
    5·1 answer
  • Which of the following is not a correct way of calculating a liquidity ratio?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!