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borishaifa [10]
3 years ago
11

Burns Company reported $1,161.405 million in net income in 2021. On January 1, 2021, the company had 409 million shares of commo

n stock outstanding. On March 1, 2021, 29.4 million new shares of common stock were sold for cash. On June 1, 2021, the company's common stock split 2 for 1. On July 1, 2021, 13.4 million shares were reacquired as treasury stock.Required: Compute Burns' basic earnings per share for the year ended December 31, 2021
Business
1 answer:
CaHeK987 [17]3 years ago
4 0

Answer:

Earnings Per Share = $1.35

Explanation:

To calculate the basic earnings per share, we first need to compute the Weighted Average No. of Shares Outstanding:

Jan.1: 409 * (12/12)    = 409 * 2                                    = 818 million

Mar.1: 29.4 * (10/12)   = 24.5 * 2                                   =  49 million

July 1: 13.4 * (6/12)                                                        =   <u>(6.7) million</u>

Weighted Average No. of Shares Outstanding:        =   860.3 million

Note: We multiplied by 2 in Jan.1 and Mar.1 transactions to account for common stock split 2 for 1.

Now calculate the Earnings Per Share:

Earnings Per Share =   <u>                        Net Income                                </u>

                                    Weighted Average No. of Shares Outstanding

Earnings Per Share =       <u>1,161.405</u>

                                            860.3

Earnings Per Share = $1.35

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If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off, the ent
Firlakuza [10]

Answer:

d.No effect on the expenses of the current period.

Explanation:

In the case when the credit balance of the allowance for doubtful debt more than the bad debt amount i.e. written off

So the entry for writing off against the allowance would result in no effect on the expense for the present period

As the bad debt expense is debited and the allowance for doubtful debt would be credited therefore the option d is correct

4 0
3 years ago
On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.
Zarrin [17]

Answer and Explanation:

The journal entries are shown below:

1  Equipment   $53,420

     To Cash  $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

=  $53,420

2. Depreciation expense $9,614

      To Accumulated Depreciation - Equipment  $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

5 0
3 years ago
During fiscal year-end 2016, Kohl’s Corporation reports the following (in $ millions): net income of $556, retained earnings at
nikitadnepr [17]

Answer:

c. $363 million

Explanation:

We can compute this easily by making a retained earning extract from the balance sheet at the closing date,

Opening Retained earnings                    $12,329

Add retained earnings for the year         $556

Less: Dividends paid                                 $363

Closing Retained earnings                       $12,522

Reverse calculating the information gives us c. $363 million

Hope that helps.

7 0
2 years ago
Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only on
pashok25 [27]

Answer and Explanation:

1. The total amount of traceable fixed manufacturing overhead is given below:-

                                                 Alpha            Beta

Number of units produced   100,000       100,000

Traceable fixed

manufacturing overhead      $16                 $18

Total amount of traceable fixed

manufacturing overhead $1,600,000  $1,800,000

2. The total amount of common fixed expenses is given below:-

                                                 Alpha            Beta

Number of units produced   100,000       100,000

Common fixed

manufacturing overhead       $15                 $10

Total amount of common fixed

manufacturing overhead     $1,500,000  $1,000,000

3. The computation of increase or decrease of profit is shown below:-

Selling price                        $80

Less: Variable cost

Direct material                   ($30)

Direct labor                        ($20)

Variable manufacturing

overhead                             ($7)

Contribution margin           $23

Less: Variable selling

expenses                            ($12)

Profit per unit                       $11

Total profit increase

(10,000 × $11)                      $110,000

The computation of increase or decrease of profit is as shown below:-

Selling price                        $39

Less: Variable cost

Direct material                   ($12)

Direct labor                        ($15)

Variable manufacturing

overhead                             ($5)

Contribution margin           $7

Less: Variable selling

expenses                            ($8)

Profit per unit                       ($1)

Total profit decrease

(5,000 × -$1)                      -($5,000)

4 0
3 years ago
Which of the following statements best describes a difference between HR
Rainbow [258]

The option that best describes the difference between HR planning and a staffing plan is this:

B. Unlike HR planning, a staffing plan identifies only the company's present hiring needs.

<h3>What is the difference between HR planning and staffing?</h3>

The difference between the two mentioned concepts lies in the fact that HR planning is a long-term plan that is aimed at trying to understand how the staffing needs of the company can be improved for better success.

Unlike HR planning, a staffing plan is aimed at identifying the immediate employment needs of the company and filling them up. In businesses, HR planning is very vital to building sustainability. Staffing is also important but it only considers the interim.

So, the difference between these two concepts can be pinned down to the time factor. While one satisfies a need immediately, the other looks at the future and makes reasonable plans that ensure sustainability.

Learn more about HR planning here:

brainly.com/question/13761208

#SPJ1

8 0
1 year ago
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