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Belltower, Inc. has net income for 2016 of $370,000. At January 1, 2016, the company had outstanding 54,000 shares of $50 par va

horrorfan [7]

Answer:

A. $5.17

Explanation:

Use the following formula to calculate the Earnings per share

Earnings per share = ( Net Income - preferred Dividend ) / Weighted average numbers of outstanding shares

Where

Net Income = $370,000

Preferred Dividend = 10,000 x $100 x 6% = $60,000

Weighted average numbers of outstanding shares = 54,000 shares + ( 18,000 shares x 4/12 ) = 54,000 shares + 6,000 shares = 60,000 shares

Placing values in the formula

Earnings per share = ( $370,000 - $60,000 ) / 60,000 shares

Earnings per share = $5.17 per share

3 0

3 years ago

CarPro is an automobile dealer selling only new cars. CarPro sells three types of vehicles: sedans, SUVs and trucks. CarPro plac

netineya [11]

Answer:

14 truck and 1 suv produce 21,800 profit

Explanation:

We have to solve for the contribution margin considering the constraing resourse which, is the ordering cost:

$\left[\begin{array}{cccc}&sedan&SUV&truck&\\$NRV&19000&21850&20425&\\$Cost&-18000&-20500&-19000&\\$CM&1000&1350&1425&\\$Constrain resource&18000&20500&19000&\\$CM per constrain&0.05556&0.0659&0.075&\\\end{array}\right]$

The card models revenue is calcualted using the net realizable value for each card, which is their sales price less the 5% sales commission.

Then we solve for how many truck will it purchase:

300,000 / 19,000 = 15,78

So the company will purchase 15 trucks

giving 15 x 1,425 = 21,375

This will require 2.5 x 15 = 37.5 hours thus 5 sales man (40 labor)

This creates 2.5 hours unsured

and also 300,000 - 15,000 x 19,000 = 15,000 dollar which are not productive

So, we will try to make a better use to purchase the SUV which is the second best option instead of the 15th truck:

giving 14 x 1,425 + 1350 = 21,300

we subtract the 500 dollar of sales man and get a 21,800 profit

with less unproductive dollar. So this will be the answer

7 0

4 years ago

The Petit Chef Co. has 10.4 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments

Lunna [17]

Answer:

8.10%

Explanation:

For computing the YTM we have to applied the RATE formula that is shown on the attachment

Data provided in the question

Present value = $1,119.34

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 10.4% = $104

NPER = 7 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the YTM is 8.10%

6 0

4 years ago

On January 1, Boston Enterprises issues bonds that have a $2,200,000 par value, mature in 20 years, and pay 9% interest semiannu

Marina86 [1]

Answer:

1. How much interest will Boston pay (in cash) to the bondholders every six months?

semiannual coupon = $2,200,000 x 9% x 1/2 = $99,000

2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31.

a) January 1, 202x, bonds issued at par

Dr Cash 2,200,000

Cr Bonds payable 2,200,000

b) June 30, 202x, first coupon payment

Dr Interest expense 99,000

Cr Cash 99,000

c) December 31, 202x, second coupon payment

Dr Interest expense 99,000

Cr Cash 99,000

3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 96 and (b) 104.

a) January 1, 202x, bonds issued at 96

Dr Cash 2,112,000

Dr Discount on bonds payable 88,000

Cr Bonds payable 2,200,000

b) January 1, 202x, bonds issued at 104

Dr Cash 2,288,000

Cr Bonds payable 2,200,000

Cr Premium on bonds payable 88,000

3 0

4 years ago

BlendIn, Inc. manufactures covers for blenders and toaster ovens. Because its product lines are similar, BlendIn can produce mos

Masja [62]

I’m pretty sure the answer is B $147,400

3 0

3 years ago