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Lady_Fox [76]
2 years ago
10

On June 1, 2018, Stellar Company and Pearl Company merged to form Martinez Inc. A total of 733,000 shares were issued to complet

e the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 577,000 shares of stock for cash. All 1,310,000 shares were outstanding on December 31, 2020. Martinez Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 42 shares of common at any interest date. None of the bonds have been converted to date. Martinez Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,475,000. (The tax rate is 20%.) Determine the following for 2020.
a. The number of shares to be used for calculating:_______
b. The earnings figures to be used for calculating: ________
Business
1 answer:
liubo4ka [24]2 years ago
4 0

Answer:

a. The number of shares to be used for calculating:_______

  • basic EPS = 733,000 + (577,000 x 9/12) = 1,165,750 shares
  • diluted EPS = 1,165,750 + (600,000/1,000 x 42) = 1,190,950  

b. The earnings figures to be used for calculating: ________

  • basic EPS = net income = $1,475,000
  • diluted EPS = $1,475,000 + ($600,000 x 8%) - (20% x $600,000 x 8%) = $1,475,000 + $48,000 - $9,600 = $1,513,400

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The average cost associated with each additional dollar of financing for investment projects is:_________
Roman55 [17]

Answer:

c) the marginal cost of capital

Explanation:

The cost which a company bears to add one dollar / unit of capital is called marginal cost. We know that the company raise funds through different sources which can be debt from banks and stocks (common and preferred). This process of raising capital involves a cost which is termed as marginal cost of capital or the cost required to raise an additional unit of capital.

7 0
2 years ago
An incomplete cost of goods manufactured schedule is presented below.
svlad2 [7]

Completing the Cost of Goods Manufactured Schedule for Riverbed Company is as follows:

<h3>Cost of Goods Manufactured Schedule</h3>

Work in process (1/1)                             $222,600

Direct materials:

Raw materials inventory (1/1)                 $ 47,300

Add: Raw materials purchases              168,000

Total raw materials available for use $215,300

Less: Raw materials inventory (12/31)     24,500

Direct materials used                          $190,800

Direct labor                                          $114,500

Manufacturing overhead:

Indirect labor                 19,600

Factory depreciation   37,900

Factory utilities             72,600

Total overhead                                       130,100

Total manufacturing cost                  $658,000

Total cost of work in process           $658,000

Less: Work in process (12/31)                85,600

Cost of goods manufactured            $572,400

<h3>What is the Schedule of Cost of Goods Manufactured?</h3>

The Schedule of Cost of Goods Manufactured shows the costs of:

  • Beginning Work in Process
  • Raw materials used
  • Direct labor
  • Overhead
  • Less Ending Work in Process.

Thus, the Schedule of Cost of Goods Manufactured for Riverbed Company shows that the cost of goods manufactured for the period is <u>$572,400</u>.

Learn more about preparing the Schedule of Cost of Goods Manufactured at brainly.com/question/24257342

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6 0
2 years ago
Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth. For the month of July, t
iragen [17]

Answer:

Spending variance will be equal to -729

Explanation:

We have given wages and salary is $2060 per month plus $442 per birth

We have given total number of birth = 117

So standard cost = $2060+117×$442 = $53774

Actual wages and salary for the month is = $54500

We have to find the spending variance

Spending variance is given by

Spending variance = Standard cost - actual cost = $53774 - $54500 = -729

So spending variance will be equal to -729

6 0
3 years ago
Gleason Company reported net income of $242,000 for the year. During the year, accounts receivable increased by $32,000, account
Degger [83]

Net cash provided by operating activities for the year is $265,000. $102,000. $242,000. $337,000 is :- <u>$265,000</u>

What is depreciation expense?

A fixed asset's share that has been deemed consumed in the current period is subject to depreciation expense. The cost is subsequently added to the expense list. With this charge, the carrying amount of fixed assets will be steadily decreased as their value is depleted over time. There is no cash outflow related to this item because it is non-monetary.

When an entry is made to the depreciation expenditure account, the contra asset account that offsets the fixed assets (asset) account is the accumulated depreciation account. Over the course of a fiscal year, the balance in the depreciation expenditure account grows; at year's end, the account is flushed out and its balance is reset to zero.

To learn more about depreciation expense with the help of given link:

brainly.com/question/25530648

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4 0
1 year ago
Read 2 more answers
Swifty Corporation has the following budgeted sales: January $30000, February $90000, and March $50000. 40% of the sales are for
klasskru [66]

Answer:

Total cash collection= $62,000

Explanation:

Giving the following information:

40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month.

Sales:

January $30000

February $90000

March $50000

<u>Cash collection March:</u>

Sales in account February= (90,000*0.6)*0.5= 27,000

Sales in account March= (50,000*0.6)*0.5= 15,000

Sales in cash March= (50,000*0.4)= 20,000

Total cash collection= $62,000

4 0
3 years ago
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