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Ulleksa [173]
3 years ago
11

Terrell Foods reported $ 660,000 in net income​ and its weighted - average shares outstanding for the year is 100,000 shares. In

prior years it sold $ 1,000,000 of​ 8% long - term convertible bonds at par which are still outstanding at the start of the year. The bonds are convertible into 40,000 shares of common stock. The tax rate for all years is​ 40%. Bondholders convert the bonds on July 1 of the current year. If Terrell has no other potentially dilutive securities and no preferred​ stock, what are basic and diluted​ EPS?
Business
1 answer:
Solnce55 [7]3 years ago
3 0

Answer:

Basic EPS = $6.6

Diluted EPS = $5.06

Explanation:

The computation of basic and diluted​ EPS is shown below:-

Basic EPS = Net income ÷ Weighted average shares outstanding

= $660,000 ÷ 100,000

= $6.6

Interest on convertible bonds = 1,000,000 × 8%

= 80,000

Diluted EPS = (Net income + Interest on convertible bonds × (1 - Tax%)) ÷ (Weighted average shares outstanding + Shares from Convertible bonds)

= ($660,000 + 80,000 × 60%) ÷ (100,000 + 40,000)

= ($660,000 + 48,000) ÷ (140,000)

= $708,000 ÷ 140,000

= $5.06

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A retail company sells products such as agricultural produce and consumer products. The company procures materials from farmers
mojhsa [17]

Answer:

Inbound logistics

Explanation:

Inbound logistics is the process of obtaining raw materials, and other goods and services, to the firm, while outbound logistics is the process of delivering the final goods and services from the firm to the customers.

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5 0
3 years ago
Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales co
Aloiza [94]

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Explanation:

All star Exposure

Monthly income Statement

$ $

Sales. 475,000

Less: Expenses

Sales commission 42,000

Technology cost 71,000

Research & Development cost 140,000

Selling Expenses 12,000

Administrative Expenses 30,000

---------------------

(295,000)

---------------------

Net income. 180,000

-----------------------

The All star income statement has no line item for cost of good sold because cost of good sold is a direct cost incurred by All star Exposure on the goods sold. it does not appear as part of the expenses in the income statement.

5 0
3 years ago
Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200.
zavuch27 [327]

Answer:  Debit Accounts Receivable -Valley Spa  of $10,438 Credit interest revenue $238, Credit Notes receivable $10,200

Explanation:

Interest  Revenue =  Principal x Rate X time

$10,200 x 14% x 60/ 360 ( Using 360 days in a year)

$238

Journal to record dishonored note  for Tubman

Accounts titles and explanation           Debit         Credit

Accounts receivable                         $10, 438  

Interest revenue                                                                $238

Notes receivable                                                    $10,200

8 0
3 years ago
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