1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helga [31]
3 years ago
13

Frantic Fast Foods had earnings after taxes of $430,000 in 20X1 with 345,000 shares outstanding. On January 1, 20X2, the firm is

sued 34,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 23 percent.
Required:
a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.)
b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.)
Business
1 answer:
Anuta_ua [19.1K]3 years ago
3 0

Answer:earnings per share for the year 20X1= $1.25 per share

earnings per share for the year 20X2 = 1.40

Explanation:

Earning per share is calculated as  = Earning after taxes ÷ Shares outstanding

Therefore, earnings per share for the year 20X1.

= $430,000 ÷345,000 shares

= $1.25 per share

2. In the next year,there was a change in earnings after tax by 23 percent and an increase in shares by  34,000,

Therefore, we have earnings per share for the year 20X2 as  

= ($430,000 × 1.23) ÷ ( 345,000 + 34,000)

=528,900/379000

=1.3955 rounded to 1.40

You might be interested in
Why does a campground at a national park not necessarily count as a public good?
In-s [12.5K]
It does not necessarily count as public good because a camp ground is not a good method of showing importance of the national park as the park is open to the public and should be respected in any means possible as they are open to the public and having it as a campground is not a way of showing its importance.
5 0
3 years ago
Read 2 more answers
The first step in establishing training and development programs is to:
dexar [7]
The first step in establishing training and development programs is to do a needs assessment. This will provide data on what is needed and what is wanted.
There isn't any sense to developing training, if no one needs or wants it.
8 0
3 years ago
A stock has a beta of 1.16, the expected return on the market is 12 percent, and the risk-free rate is 3.5 percent. What must th
Anika [276]

Answer:

13.36%

Explanation:

R = Rf + B(Rm - Rf)

where,

Rf= risk free return

B= beta

Rm= Market rate of return

Rm-Rf= Risk premium

4 0
3 years ago
Presented below is information for Headland Company.
OlgaM077 [116]

Answer and Explanation:

The computation is shown below:

For account receivable turnover ratio

Accounts Receivable Turnover is

= Sales ÷ Average Receivables

Beginning Accounts Receivable  $21,400

Add: Sales                                 $105,300

Less: Cash Receipts                $81,300

Ending Accounts Receivable   $45,400

Now

Accounts Receivable Turnover is

= $105,300 ÷ ($21,400 + $45,400) ÷ 2

= 3.15 times

Now days to sell is  

= 365 ÷ 3.15 times

=116 days

5 0
3 years ago
What type of discount would Lennox offer its air conditioner dealers if they placed their orders and received delivery before Ap
gladu [14]
Seasonal allowance would be given
7 0
3 years ago
Read 2 more answers
Other questions:
  • On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra uses the computer 85 percent o
    10·1 answer
  • Difference between insurance and assurance
    14·1 answer
  • Determine the cost of goods sold expense assuming kramer had used the lifo method instead of the fifo method.
    13·1 answer
  • Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from variou
    6·1 answer
  • Net income $ 209,600 Preferred stock outstanding, 12% cumulative $ 80,000 Market price per share of common stock $ 24.00 Total S
    8·1 answer
  • A nondurable good is defined as a(n)
    6·1 answer
  • Preparing a Direct Labor Budget Patrick Inc. makes industrial solvents. Planned production in units for the first 3 months of th
    10·1 answer
  • The Material Safety Data Sheet provides inventory quantity and availability information that is updated on a continuous basis as
    13·1 answer
  • I think we should raise taxes for the wealthy so we can increase the public services.
    10·2 answers
  • Your firm needs a computerized machine tool lathe which costs $53,000 and requires $12,300 in maintenance for each year of its 3
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!