The answer I think it is ,is (B.)
Answer:
a) True
Explanation:
Sales = Opening + Production - Closing
$200,000 = $22,000 + Production - $24,000
Production = 202,000 Units
Hence, the answer is a. True
Answer:
Piper should report $308,000 as net income for the year . Option C
Explanation:
Accumulated Depreciation till 2014 = [$600,000×(5+4+3)] ÷ 15 = $ 480,000
Book Value at beginning 2015 = $600,000 - $480,000 = $120,000
Depreciation Expense in 2015 = $120,000 ÷ 2 = $60,000
Net Income before depreciation & taxes = $ 500,000
Depreciation = $ 60,000
Electronic Benefits Transfer = Net Income before depreciation & taxes - Depreciation
= $ 500,000 - $ 60,000
=$ 440000
Tax Expenses = $440,000 × 30% = $132,000
Net Income =$ 308,000
Answer:
e. Sunk cost.
Explanation:
As per the given statement, the best appropriate option is sunk cost. As the sunk cost deals with the past cost which is already incurred in the past and it cannot be changed or avoided, neither it can be recovered. Example - Rent expense.
Plus it does not affect the future decisions that means it is irrelevant for decision-making aspects.
Answer:
a. $3.5 per share
b. $1.49 per share
c. $38.38 per share
d. 1.93 times
Explanation:
The computation is shown below:
a. Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = Additions to retained earnings + cash dividends
= $261,000 + $194,000
= $455,000
So, the earning per share equal to
= $455,000 ÷ 130,000 shares
= $3.5 per share
b. Dividend per share = (Total dividend) ÷ (number of shares)
= ($194,000) ÷ (130,000 shares)
= $1.49 per share
c. Book value per share = (Total equity) ÷ (number of shares)
= ($4,990,000) ÷ (130,000 shares)
= $38.38 per share
d. Market to book ratio = (Market price per share) ÷ (book value per share)
= $74 ÷ $38.38
= 1.93 times
