What logistical decisions would you make to ship bread from a warehouse to a grocery store that is two. hours away?

Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round

taurus [48]

Question Completion:

Income Before Taxes (from ongoing operations) $2,470,000

Income Tax Rate (’x2) 30%

5% Preferred Stock ($100 Par, 10,000 shares issued)

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Answer:

The company's EPS is:

= 3.46

Explanation:

a) Data and Calculations:

Income Before Taxes (from ongoing operations) (’x2)= $2,470,000

Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000

Net Income after taxes = $1,729,000

5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000

Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)

Outstanding common stock = $500,000

EPS (Earnings per share) = Net income after taxes/No. of outstanding shares

= $1,729,000/500,000

= $3.458

b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock. As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.

6 0

2 years ago

During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following tr

DanielleElmas [232]

Answer:

Trial Income Statement:

Service revenue $17,000

Rent expense ($3,500)

Insurance expense ($350)

Wages expense ($10,500)

Net income $2,650

*We need to adjust other expenses like supplies or utilities. I assumed the salaries paid were for a 10 days period since no one pays salaries in advance.

Trial Balance Sheet

Assets:

Cash $62,200

Supplies $1,000

Prepaid insurance $3,850

Equipment $10,000

Total Assets $77,050

Liabilities and Equity:

Accounts payable $8,000

Wages payable $7,000

Common Stock $60,000

Retained earnings $2,050

Total Liabilities and Equity $77,050

Explanation:

July 1

Dr Cash 60,000

Cr Common stock 60,000 (6,000 stocks $10 par value)

July 3

Rent expense 3,500

Cr Cash 3,500

July 5

Dr Prepaid insurance 4,200

Cr Cash 4,200

Adjusting entry July 31

Dr Insurance expense 350

Cr Prepaid insurance 350

July 7

Dr Supplies 1,000

Cr Accounts payable 1,000

July 10

Dr Wages expense 3,500

Cr Cash 3,500

Adjusting entry July 31

Dr Wages expense 7,000 ($3,500 x 2 10 day periods)

Cr Wages payable 7,000

July 14

Dr Equipment 10,000

Cr Cash 2,500

Cr Accounts payable 7,500

July 15

Dr Cash 8,000

Cr Service revenue 8,000

July 19

Dr Accounts payable 500

Cr Cash 500

July 31

Dr Cash 9,000

Cr Service revenue 9,000

Dr Retained earnings 600

Cr Dividends payable 600

Dr Dividends payable 600

Cr Cash 600

6 0

2 years ago

Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc

lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0

3 years ago

One of the top-selling items at a gift shop at Hilo, HI are autographed pictures of Jack Star. Sales are 18 pictures per week, a

ValentinkaMS [17]

Answer:

a. 54

b. 810 dollars

c. 390 dollars

d. 75 pictures

e. 561.6 dollars and 562.5 dollars

f. 38 pictures

Explanation:

demand per week = 18 pictures

annually this demand = 18 *52 = 936

charge per unit = 60 dollars

order for 6 weeks = 6*18 = 108 quantities

cost of ordering = 45 dollars

cost of holding annually = 15 dollars

a. current average inventory

= (18*6)/2

= 54 pictures

b. current annual holding cost

(108/2)*15

= 810 dollars

c. current annual holding cost

= 936/108 * 45

= 390 dollars

d. size orders to be placed

= $\sqrt{\frac{2*936*45}{15} }$

= $\sqrt{5616}$

= 74.9

≈ 75 pictures have to be ordered

e. ordering holding cost per picture

936/75 * 45

= 561.6 dollars

and inventory holding cost per picture

= 75/2 * 15

=562.5 dollars

f. shop inventory per year at optimal ordering quantity

= 75/2

= 37.5

≈ 38 pictures

4 0

3 years ago

Assume the marginal propensity to consume is 0. 8. How will a decrease in taxes of $100 billion and a decrease in government spe

lisabon 2012 [21]

Aggregate demand will decrease by $900 billion.

The overall demand for finished goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics. Effective demand is a common name for it, however other times this term is used to make a distinction. This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point. The aggregate demand is made up of investment, corporate and governmental expenditures, consumer spending, and net exports. Real output is represented on the horizontal axis and the price level is plotted on the vertical axis to represent the aggregate demand curve. Although it is presumed to be downward sloping, the Sonnenschein-Mantel-Debreu findings demonstrate that the curve's slope

To know more about aggregate demand refer to brainly.com/question/24777291

#SPJ4

3 0

11 months ago