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Fudgin [204]
3 years ago
10

A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p

reference shares of $1. If net income after tax for the period is $160,000 and the preference dividend is $10,000 then the basic EPS for the period is: a. $0.30 b. $0.33 c. $0.31 d. $0.32
Business
1 answer:
ella [17]3 years ago
7 0

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

Net income after tax for the period                            $160,000

Less Preference Dividend                                           ($10,000)

Earnings Attributable to Holders of Common Stock $150,000

Weighted Average Number of Common Stock calculation :

Outstanding common shares                                      500,000

Therefore,

Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

                                                     = $0.30

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When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions a
Lunna [17]

Answer:

The correct answer is B. arise often through application of (correct) accounting principles .

Explanation:

Accounting analysis is an important precondition for an effective financial analysis. This is because the quality of the financial analysis, and the inferences made, depends on the quality of the implicit accounting information, the raw material for the analysis. Even though the accounting according to the accumulation principle allows to perceive the financial performance and condition of a company, which is not possible in the case of cash-based accounting, the imperfections of the company can distort the economic content of the financial reports.

5 0
3 years ago
A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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3 0
2 years ago
How should a person cope with situational factor for which there are ethical confident skills?
ipn [44]

Self-confidence is considered one of the most influential motivators and regulators of behavior in people's everyday lives (Bandura, 1986). A growing body of evidence suggests that one's perception of ability or self-confidence is the central mediating construct of achievement strivings (e.g., Bandura, 1977; Ericsson et al., 1993; Harter, 1978; Kuhl, 1992; Nicholls, 1984). Ericsson and his colleagues have taken the position that the major influence in the acquisition of expert performance is the confidence and motivation to persist in deliberate practice for a minimum of 10 years.

Self-confidence is not a motivational perspective by itself. It is a judgment about capabilities for accomplishment of some goal, and, therefore, must be considered within a broader conceptualization of motivation that provides the goal context. Kanfer (1990a) provides an example of one cognitively based framework of motivation for such a discussion. She suggests that motivation is composed of two components: goal choice and self-regulation. Self-regulation, in turn, consists of three related sets of activities: self-monitoring, self-evaluation, and self-reactions. Self-monitoring provides information about current performance, which is then evaluated by comparing that performance with one's goal. The comparison between performance and goal results in two distinct types of self-reactions: self-satisfaction or -dissatisfaction and self-confidence expectations. Satisfaction or dissatisfaction is an affective response to past actions; self-confidence expectations are judgments about one's future capabilities to attain one's goal. This framework allows a discussion of self-confidence as it relates to a number of motivational processes, including setting goals and causal attributions.

7 0
3 years ago
Which of the following statements regarding GDP is correct?
nirvana33 [79]

Answer:

Correct option is (a)

Explanation:

GDP or Gross domestic product includes monetary value of all goods and services produced within a country. It includes all private and public investments and exports less taxes and imports.

Option b, c and d are incorrect as GDP accounts for only domestic production and not foreign activities. Details about how income is distributed is not given by GDP. GDP provides details about economic condition of the nation. GDP does not indicate wholesome well being of the nation like human development, infant mortality and standard of living.

GDP accounts for factory production but does not account for any production carried out at the cost of environmental degradation.

3 0
3 years ago
Zhang company reported cost of goods sold of $841,000, beginning inventory of $38,400 and ending inventory of $46,900. the avera
Hunter-Best [27]

Zhang company suggested price of goods bought of $841,000, establishing inventory of $38,400 and ending inventory of $46,900. the common stock amount is $42560.

Average stock is the average amount or price of your stock over two or more accounting periods. It is the mean cost of inventory over a given quantity of time. That price may additionally or may additionally now not equal the median fee derived from the identical data.

<h3>What is the average inventory level?</h3>

The average inventory degree refers to the number of units, now not the monetary fee of these units. Determining average stock degree is simpler than identifying the average inventory cost. There's one less calculation: you do the identical thing, however assign no value to products. You're simply averaging their quantity.

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4 0
2 years ago
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