A firm has taxes of $2,000, interest expense of $1,000, EBIT of $7,500, common stock dividends of $1,500, and preferred dividend
1 answer:
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Answer:
c. 120,000 shares
Explanation:
*Assumed purchase of treasury shares
$600,000
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Note: The proceeds also must be increased (or decreased) by any tax benefits that would be added to (or deducted from) paid-in capital when the eventual tax deduction differs from the amount expense, the "excess tax benefit." Since that occurs when the stock price at vesting differs from the stock price at the grant date, the fact that the market price remained at $10 avoided that issue.
Answer:
A.$75,000
B.$60,000
C.$30,000
D.33%
E.$15,000
F.$3,500
G.$18,000
H.$34,500
I.31%
J.$18,000
K.$116,300
L.$90,300
M.31%
Explanation:
Payleast Shoes Company
2020
1.Net sales = $90,000
2.
Beginning Inventory = $12,000
Add Purchase (Gross) = $70,000
Less Returns/Allowance = $6,000
Less Purchase discounts = $4,000
Add Freight-in = $3,000
Cost of goods available for sale = $75,000
Less End inventory = $15,000
Cost of Sales = $60,000
3. Gross profit = $30,000
4. Gross Profit % = 33%
2021
1.Net sales = $110,000
2.
Beginning Inventory = $15,000
Add Purchase (Gross) = $82,500
Less Returns/Allowance = $5,000
Less Purchase discounts = $2,500
Add Freight-in = $3,500
Cost of goods available for sale = $93,500
Less End inventory = $18,000
Cost of Sales = $75,500
3. Gross profit = $34,500
4. Gross Profit % = 31%
2022
1.Net sales = $130,000
2.
Beginning Inventory = $18,000
Add Purchase (Gross) = $99,000
Less Returns/Allowance = $8,800
Less Purchase discounts = $1,900
Add Freight-in = $10,000
Cost of goods available for sale = $116,300
Less End inventory = $26,000
Cost of Sales = $90,300
3. Gross profit = $39,700
4. Gross Profit % = 31%
