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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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A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the
labwork [276]

Answer:

C alternative would yield the lowest total cost for an expected annual volume of 111 boats

Explanation:

The computation of each alternatives are shown below:

A (new location)

Fixed cost                                     $310,000

Variable cost ($400 × 111 boats) $44,400

Transportation cost                      $5,300

Total cost                                      $359,700

B (subcontract)

Fixed cost                                       $0

Variable cost ($3,200 × 111 boats)$355,200

Transportation cost                      $32,000

Total cost                                      $387,200

C (expand existing facilities)

Fixed cost                                     $74,000

Variable cost ($1,200 × 111 boats) $133,200

Transportation cost                      $88,000

Total cost                                      $295,200

Out of these, the alternative C has the lowest total cost

3 0
3 years ago
Your bank gives you 50 points for monthly online bill pay, 50 points for monthly mobile deposits, 100 points per car payment, an
ololo11 [35]

Answer: Last month earning = $17.25

Explanation:

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True or false Every risk an individual faces can be insured
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true

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6 0
3 years ago
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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
Y_Kistochka [10]

Answer:

Product cost= $75

Explanation:

Giving the following information:

Variable costs per unit:

Direct materials $17

Direct labor $47

Variable manufacturing overhead $11

Under the variable costing method, the unitary product cost is calculated using the direct material, direct labor, and unitary variable overhead:

Product cost= 17 + 47 + 11= $75

6 0
3 years ago
Simba Company’s standard materials cost per unit of output is $10.00 (2.00 pounds x $5.00). During July, the company purchases a
Lelechka [254]

Answer:

A)1192 A

B) 192 A

C)  1000 A

Explanation:

The Question is to Compute Simba Company's Total, Price, and Quantity materials Variances

1) Computation of material Cost Variance

= The Standard Cost - The Actual Cost of the material

= 1,500 units x 2 pounds = 3000 pounds

Standard Cost = 3,000 pounds x $5 = $15,000

Therefore material variance = $15,000 - $16,192 = 1192A

2) The material Rate Variance or the Price Variance

= (Standard Rate - Actual Rate) Actual Quantity

= Actual Rae = $16,192 / 3200 = $5.06

Material Rate Variance = (5- 5.06) x 3,200

= 192 A

3) The material Usage Variance or Quantity variance

= (The Standard Quantity - Actual Quantity) Standard Rate

Standard Quantity = 1,500 Units x 2 Pounds = 3000 pounds

Material Usage Variance = (3,000-3,200) 5

= 1000 A

5 0
3 years ago
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