All categories

2 years ago

Kasravi co. Had net income for 2013 of shs 400,000.The average number of shares outstanding for the period was 200,000 shares

Business

1 answer:

TEA [102]2 years ago

8 0

Answer:

$1.98

Explanation:

Calculation for should Kasravi Co. report for diluted earnings per share for the year ended 2013

First step is to calculate the Proceeds amount

Proceeds = 12000 × $30

Proceeds = $36,000

Second step is to calculate the Shares assumed purchased

Shares assumed purchased= ($36,000 ÷ $36)

Shares assumed purchased = 10000 shares.

Third step is to calculate the Incremental share issued

Incremental share issued (12000 - 10000)

Incremental share issued = 2000 shares

Now let calculate the diluted earnings per share for the year ended 2013 using this formula

Diluted earnings per share = (Net income ÷ Average Weighted shares + incremental share issued))

Let plug in the formula

Diluted earnings per share = ($400,000 ÷ (200,000 shares +2000 shares))

Diluted earnings per share= $400,000 ÷ 202,000 shares

Diluted earnings per share= $1.98

Therefore The amount that Kasravi Co. Should report for diluted earnings per share for the year ended 2013 is $1.98

You might be interested in

Jake nickells crowdsourcing approach to his business initially kept the business finances under control in all of the following

svetlana [45]

Answer:

It eliminated the need for fixed costs.

Explanation:

3 0

2 years ago

Evaluate the extent to which Wal-Mart's previous revenue policy was consistent with the revenue recognition principle.

Kipish [7]

Answer:

Wal-Mart's previous revenue policy was inconsistent with the revenue recognition principle. It used to recognize revenue when performance obligations have not been met.

Explanation:

In response to SAB 101 issued by the Stock Exchange Commission in 1999, Wal-Mart changed its revenue recognition policy for layaway transactions. Layaway transactions are those in which Wal-Mart sets aside merchandise for customers who make partial payment. Before SAB 101, Wal-Mart recognized all revenue on the sale at the-time of the layaway. After the change, Wal-Mart does not recognize revenue until customers satisfy all payment obligations and take possession of the merchandise.

4 0

2 years ago

The bulk of evidence suggest that_______.

VashaNatasha [74]

Answer:

Explanation:

I’m not sure tho

3 0

2 years ago

ABC Inc. recently purchased an equipment. The price negotiated with the seller was $20,000. Aqua also paid sales tax of $2,000 o

MaRussiya [10]

Answer: $22500

Explanation:

The following information can be gotten from the question:

Price of equipment = $20,000

Sale tax = $2000

Maintenance cost = $2200

Shipping cost = $500

The amount that the equipment should be recorded on the balance sheet prior to recording depreciation expense will be calculated as:

Price = $20000

Add: Sales Tax = $2000

Add: Shipping & Preparation = $500

Price of the equipment before depriciation will then be:

= $20000 + $2000 + $500

= $22500

5 0

2 years ago

Which of the following statements is incorrect? Group of answer choices Cost of goods available for sale will always be equal to

lorasvet [3.4K]

Answer:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold.

Explanation:

Ending inventory is greater than beginning inventory when purchases are less than cost of goods sold is the wrong answer option

Ending inventory is the amount of inventory a company has in stock at the end of it's fiscal year. It is the beginning inventory plus net purchases minus cost of goods sold.

When the beginning inventory is greater than the ending inventory, then has been sold in the period than you bought.

7 0

2 years ago