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3 years ago

Ignoring taxes what is the effect on earnings in the year after the shares are granted to executives

Business

1 answer:

ipn [44]3 years ago

4 0

Answer: C. $40 million.

Explanation:

By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.

The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.

Total compensation = No. of shares * fair value of shares

= 15,000,000 * 8

= $120,000,000

Apportioned over 3 years;

= 120,000,000/3

= $40,000,000

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Lacey Company prepared the tabulation below at December 31, 2022. Net Income $310,000

valentinak56 [21]

Answer:

Net cash provided by operating activities is $325,000.

Explanation:

Lacey Company

Cash Flow Statement (Operating Activities Only)

December 31, 2022.

Details Amount ($)

Net Income 310,000

Depreciation expense 45,000

Increase in accounts receivable (55,000)

Decrease in inventory 12,000

Increase in accounts payable 6,000

Increase in prepaid expenses (4,000)

Decrease in income taxes payable 3,500

Gain on disposal of land 7,500

Net cash provided (used) by operating activities  325,000 

5 0

3 years ago

Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total cost function MC  4q firm’s marginal cost

hjlf

Answer:

Explanation:

find the attached solution below

5 0

3 years ago

Campbells is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. I

Oxana [17]

Answer: Introduction phase.

Explanation:

Campbell's company is going through the introduction phase of it's development cycle. In the introduction phase, a business; builds it's customer base, makes very little or no profit, observes slow growth rate and the running cost is usually high, but the business tends to stabilize as it enters the growth phase.

6 0

4 years ago

On January 1, 2018, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To

Nikolay [14]

Answer:

$800

Explanation:

$800 = $400 cash + ($1.0 x 40 shares) common share + ($9 x 40 shares) adjusted price in common shares

3 0

3 years ago

Both you and your older brother would like to have $28,000 in 13 in years. Because of your success in this class, you feel that

DerKrebs [107]

Answer:

$693.16

Explanation:

Calculation to determine How much less than your brother will you have to deposit today

Using this formula

FV= Present value × (1 + interest rate)^number of years

Let plug in the formula

First step

$28,000 = Present value × (1 + 0.112)^13

PV= $28,000 ÷ 1.112^13

PV= $28,000 ÷ 3.97522975235

PV= $7,043.618

Second step

$28,000 = Present value × (1 + 0.104)^13

PV= $28,000 ÷ 1.104^13

PV= $28,000 ÷ 3.61907808993

PV= $7,736.777

Now let calculate how much less than your brother will you have to deposit today

Deposit today= $7,736.777-$7,043.618

Deposit today= $693.159

Deposit today=$693.16 (Approximately)

Therefore How much less than your brother will you have to deposit today will be $693.16

5 0

3 years ago