Answer:
$8,000
Explanation:
The computation of the interest expense is shown below:
= Note payable × interest rate × number of months ÷ total number of months - Note payable × interest rate × number of months ÷ total number of months
= $200,000 × 12% × 6 months ÷ 12 months - $200,000 × 12% × 2 months ÷ 12 months
= $12,000 - $4,000
= $8,000
The 6 months is calculated from November 1, 20X1 to May 1, 20X2
And, the 2 months is calculated from On November 1, 20X1 to December 31,20X1
We assume the accounts are closed on December 31
Or we can do one thing also
Take the 4 months from Jan 1, 20X2 to May 1, 20X2
= $200,000 × 12% × 4 months ÷ 12 months
= $8,000
Answer:
Diluted earnings per share is $1.38
Explanation:
The earnings per share =earnings for common stock/number of common stock
However,the diluted earnings considers a situation where the bonds as if the bonds have been converted to common stock,hence the after tax interest payment on the bonds would be saved by increasing net income attributable to common stock and the number of common stock also increase at the same time with the possible number of stocks issued in place of bonds.
diluted earnings per share=$3,000+($21,000*2%*(1-25%)/1200+1200
=$3315/2400=$ 1.38
Answer:
Explanation:
Retention rate = 75%
Contribution to profit and overhead = 35%
Purchase laptop every 2,5 years (1/2.5=0.4 per year)
Average cost = $750
Value of loyal customer =
= Price * Purchase frequency * Gross margin * 1/(1-Retention rate)
Value of loyal customer = 750*0.4*0.35*1/(1-0.75) = 750*0.4*0.35*1/0.25 = $420
Answer:
$18.3 million
Explanation:
Financing activities: It includes those activities which comes under the long term liabilities and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption, dividend, and the purchase of treasury stock is an outflow of cash.
The computation of the amount reported as a net cash flows from financing activities is shown below:
Cash flow from Financing activities
Issuance of common stock $38.6 million
Less: Purchase of treasury stock -$20.3 million
Net Cash flow from Financing activities $18.3 million
Answer: Strategic alliances/joint ventures
Explanation:
From the question, we are informed that by 2002, Fisher's strategic initiatives in China had yielded significant results and that they had 63% of the retail film market and 7,000 stores.
The method used for their success was the strategic alliances or joint venture whereby two or more business or individuals come together and utilize the resources available to carry out a particular objective.