Answer and Explanation:
The computations are as follows
a. For basic earning per share
= Net income ÷ Average number of outstanding common shares
= ($16,888 - $1,483) ÷ 10462.282 shares
= $1.47 per share
b. Preferred stock dividends = Net income - Net income applicable to common shareholders
= $4,833 - $4,211
= $622
c. The net income applicable to common shareholders is
= Average number of common shares outstanding × Basic earning per share
= 10,527.818 × $0.40
= $4,211
d. The net income is
= Preference stock dividend + Net income applicable to common shareholders
= $1,349 + $10,583
= $11,932
e. Average number of common shares outstanding is
= Net income for common shareholders ÷ basic earning per share
= $10,583 ÷ $0.94
= $11,258.51
We simply applied the general formulas
Explanation:
There are two alternatives
1. Sold for $6,300
The inventory parts should be sold for $6,300 as the current inventory parts are not relevant as it is a sunk cost i.e $18,500
2. Repair and after that sale it
Now in this case, we have to determine the benefit generated i.e come from
= Sale value - repairing cost
= $19,700 - $9,100
= $10,600
As we can see that the alternative 2 generated higher benefit as compare to the alternative 1 so it would be more beneficial for the company
Incomplete question. The options read;
- Mary is correct, but only because Annie signed the note "Green" instead of "Greene" as indicated on the note.
- Mary is correct.
- Mary is incorrect.
- Mary is correct, but only because two payees are listed.
- Mary is incorrect unless she can prove that Susie intentionally and purposefully spelled the name wrong to prevent negotiation.
Answer:
- <u>Mary is incorrect.</u>
Explanation:
Indeed, since this just a case of name misspelling, the law in no clear terms states that such an endorsement would be counted as been illegal.
Remember, Mary acknowledges that the amount paid by Susie Smith was meant for both of them (Annie Green and Mary Hodge), hence there should be no question of illegality since funds were meant to be shared. In other words, this minor error can be overlooked.
