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Kryger [21]
3 years ago
5

During 2021, Sysco Corp. had 950,000 shares of common stock and 100,000 shares of 7% preferred stock outstanding. The preferred

stock does not have cumulative or convertible features. Sysco declared and paid cash dividends of $400,000 and $200,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Sysco issued $2,100,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Sysco's net income for the year ended December 31, 2021, was $6.00 million. The income tax rate is 20%. What will Sysco report as diluted earnings per share for 2021, rounded to the nearest cent?
a. None of these answer choices are correct
b. 56.25
c. $6.03
d. $6.35
Business
1 answer:
solong [7]3 years ago
8 0

Answer:

c. $6.03

Explanation:

<u>Earnings available to common shareholders</u>

Net Income                                                             $6,000,000

Less: Preference dividend                                     <u>$200,000   </u>

Net Income available to common shareholders  <u>$5,800,000</u>

<u />

Number of Common shares = 950,000

Equivalent common shares for convertible 5% Bonds = 10,450. [Number of bonds = 2,100,000/1,000 = 2,100 shares. Equivalent common shares = 2,100 * 5 = 10,500 shares]

Weighted average number of common shares outstanding = 950,000 + 10,500 = 960,500

Earnings per share = Earnings available to common shareholders / Weighted average number of common shares outstanding

Earnings per share = $5,800,000 / 960,500

Earnings per share = 6.038521603331598

Earnings per share = $6.04

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At the beginning of Year 1, a company reported a balance in common stock of $166,000 and a balance in retained earnings of $66,0
Vinil7 [7]

Answer:

Explanation:

1.

Shareholders equity = Common stock + Retained earnings

Beg. balance = Common stock+Retained earnings = 166,000 + 66,000 = 232,000

Statement of shareholder's equity

Beg balance 232,000

Issuance of common stock  56,000

Add: Net Income 46,000

Less: Dividends 11,600

End balance 322,400

Balance sheet

There is not information for preparation of balance sheet but following is the layout:

Assets:

Cash

Supplies

Prepaid rent

Land

Liabilities:

Accounts payable

Salaries

Utilities

Notes payable

Stockholder's equity:

Common stock 222,000 [166,000+56,000]

Retained earnings 112,000 [66,000+46,000]

Total 334,000

6 0
3 years ago
The reason why reinvested earnings have a cost equal to the required rate of return is because investors expect to earn on those
KatRina [158]

Answer:

true the investors expect to earn on those funds

4 0
3 years ago
Completed Per Day
Ratling [72]

Answer:

The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.

Explanation:

The opportunity formula comes handy in this case, which is given below:

opportunity cost formula=what one sacrifices/what one gains

If Samantha were to weed flower beds, opportunity cost is computed thus:

Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked

The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.

In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage

4 0
3 years ago
If romeo wants to encourage more innovation among his​ employees, he should​ __________.
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8 0
3 years ago
On January 2, 2014, Best Beverages acquired 45 percent of the stock of Better Bottlers for $30 million in cash. Best Beverages a
Alex787 [66]

Answer:

Calculation of 2014 equity in net income

Better Bottler's net income                      $1,125,000

($2,500,000* 45%)  

Less: Amortization of patents and           $450,000

trademarks  revaluation

(160-150* 1000,000/10 at 45%)

Less: Amortization of brand names          $270,000

($9000,000 /15 at 45%)

Equity in net income of Better bottles   $405,000

                                Journal entries

Description                                         Debit         Credit

Investment in better bottles        $405,000

Equity in net income of better bottle               $405,000

Cash                                                 $292,500

($650,000 * 45%)

investment in better bottles                             $292,500

b) Calculation of investment balance

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+ Reported income less dividends                         $5,400,000

($25,000,000 equity - $13,000,000 retained

earnings) * 45%  

-  4 yr of revaluation write off                                

($450,000 * 4)                                                         $1,800,000

($270,000 *4)                                                         <u>$1,080,000</u>

Investment balance, Dec 31, 2017                      <u>$32,520,000</u>

4 0
3 years ago
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