Why is it important to be basic?

The income statement for the Carolina Service Company for the year ended December 31, 2017, appears below. Includes $25,000 of i

KATRIN_1 [288]

Answer:

Earning per share = 2.166

Price earning = 10.15

Times interest earned = 5.4

Explanation:

Common stock outstanding at end = Shares outstanding (open) +Shares issued.

= 50000+10000= 60000 outstanding shares (at end)

a.)we know that earning per share = net income - preference dividend

Common shares outstanding at end

= ( N#1) 135000 - 5000

60000

= 2.166 earning per share

(N#1):To calculate net income we will need statement of changes in equity,Suppose par value of shares = $10,

we have Beginning equity + net income - Dividend = Equity (end)

Net Income = 600000+35000-500000

Net income = 135000

b.) Price earning = Market value per share = 22 = 10.15

Earning per share 2.166

c.) Times interest earned = Income before interest and taxes or EBIT

Interest expense

EBIT = 135000

= 135000 / 25000 = 5.4 times

6 0

3 years ago

Another name for nondisclosure is

ladessa [460]

Answer: confidentiality agreement (CA)

5 0

3 years ago

What is an appropriate font and point size selection for a business letter

olga_2 [115]

Times New Roman and 12 point font are recommended, however, Arial may also be used. It is recommended that no smaller than 10 point font is used in business letters. This helps ensure that it is large enough to be readable but not so large that content spans multiple pages because of the size of the font.

For more information, consider referring to the Purdue Style Guide: https://owl.english.purdue.edu/owl/resource/653/01/.

3 0

4 years ago

On a particular date, FedEx has a stock price of $89.27 and an EPS of $7.11 . Its competitor, UPS,had an EPS of $0.38 . What wou

AleksandrR [38]

Answer:

A) $4.77

Explanation:

Here FedEx stock price = $89.27

Fed Ex EPS = $7.11

UPS EPS = $0.38

UPS stock price = ?

By method of comparables,

FedEx Stock Price/FedEx EPS = UPS stock price/UPS EPS

89.27/7.11 = UPS Stock price/0.38

UPS Stock price = 89.27*0.38/7.11 = $4.77

8 0

4 years ago

Your family business uses a secret recipe to produce salsa and distributes it through both smaller specialty stores and chain su

Kamila [148]

Answer: False

Explanation:

Price discrimination refers to offering the same goods or services to people at a different price and it is illegal. By offering discounts to larger stores and not smaller stores, you would be practising price discrimination.

There are ways you could offer less prices to smaller stores such as through Volume discounts. This means that the more the stores purchase, the more discount they get. The larger stores buy more of the salsa and so for every additional batch purchased you could discount an extra 1%.

With the smaller stores unable to buy such large quantities they would not qualify for discounts.

7 0

3 years ago