Answer:
Diluted eps = $3 per share.
Explanation:
Outstanding shares = 100000 shares
Net income = $ 300000
Bond face value = $800000
Convertible in to shares = 16000 shares
tax rate = 40%.
we know that: diluted earning per share=( net income + after tax interest on convertible debt) / weighted average number of shares outstanding + diluted shares.
- After tax interest on convertible bond= 800000* 10% = $80000 interest.
$80000 * tax rate = 80000 * 40%= 32000.
After tax interest on convertible bond= 80000-32000= $48000.
= (300000 +48000)
/ (100000 + 16000)
= 348000/116000
= #3 per share.
Answer:
Gross profit= 131,500
Explanation:
Giving the following information:
Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experienced these variances: Materials price: $2,400 F Materials quantity: $1,400 U Labor price: $2,000 U Labor quantity: $1,000 F Overhead: $1,500 F
To calculate the cost of goods sold, we use actaul costs and quantity of direct labor and direct materials. Therefore, the only estimated cost is overhead.
Gross profit= 220,000 - 90,000 + 1,500= 131,500
Answer: FALSE
Explanation: In accounting,cost is the total amount of resources that are used by an organisation for the production of goods or service that they offer in the market for sale.
In the given case, payment to capital suppliers and deduction of payments to the entrepreneur are not considered while computing cost.
Hence, the above statement is false.
Answer:
It is before operating expenses.
Explanation:
Operating income is an accounting measure that shows the amount of money that a company has made from its daily operating activities. This means that operating income does not include earnings from non-operating activities like interest made from loans (unless we are talking about a financial institution).
Operating income is equal to revenue minus cost of goods sold, minus any other operating expense such as wages, depreciation, utilities, and rent.