What is strategy?

On December 31, 2017, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred

Talja [164]

Answer:

earnings per share = (net income - preferred dividends) / weighted common stocks = ($900,000 - $32,000) / 424,000 shares = $2.05 per share

diluted earnings per share = (net income - preferred dividends) / (weighted average + diluted shares) = ($900,000 - $32,000) / (424,000 + 3,000) = $2.03

Explanation:

Dec. 2017 outstanding common stocks 400,000

outstanding preferred stocks 40,000 x 8% x $10 = $32,000

February 28, 36,000 common stocks were issued

September 1, 9,000 shares were retired

diluted shares 30,000, exercise price $18, market price $20

net income $900,000

weighted common stocks:

400,000 x 12/12 = 400,000

36,000 x 10/12 = 30,000

- 9,000 x 8/12 = -6000

total = 424,000

diluted stocks:

[($20 - $18) / $20] x 30,000 = 3,000 diluted shares

7 0

4 years ago

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

e-lub [12.9K]

Answer:

Inacio Corporation

The cost per equivalent unit for materials for the month in the first processing department is closest to:

= $14.50

Explanation:

a) Data and Calculations:

Units Materials Conversion

Beginning work in process 2,300 $14,400 $6,500

Percentage of completion 75% 20%

Units started during the month 11,000

Total units available 13,300

Units transferred to the next 9,900 100% 100%

Ending work in process 3,400 90% 30%

Costs added during the month $173,500 $243,500

Equivalent units of production:

Units Materials Conversion

Units transferred to the next 9,900 9,900 (100%) 9,900 (100%)

Ending work in process 3,400 3,060 (90%) 1,020 (30%)

Equivalent units of production 12,960 10,920

Costs of production: Materials Conversion

Beginning work in process $14,400 $6,500

Costs added during the month 173,500 243,500

Total costs of production $187,900 $250,000

Cost per equivalent unit: Materials Conversion

Total costs of production $187,900 $250,000

Equivalent units of production 12,960 10,920

Cost per equivalent unit $14.50 $22.89

7 0

3 years ago

Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to

BigorU [14]

Question Completion with Options:

A. greater investment.

B. All of the above are correct.

C. higher public saving.

D. a higher interest rate.

Answer:

Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to

D. a higher interest rate.

Explanation:

When the government is operating a budget deficit, it means that its spendings are more than its tax revenues. It then resorts to issuing treasury bills and bonds to finance the deficit. This naturally reduces the price of bonds and raises interest rates. With rising interest rates, firms and individuals reduce their spending. The cost of borrowing becomes more expensive than before.

8 0

3 years ago

Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,0

Hoochie [10]

Answer:

$10,200

Explanation:

The computation of the deferred income tax expense or benefit is shown below:

Favorable temporary difference = $50,000

Less: Unfavorable temporary difference -$20,000

Net favorable temporary difference $30,000

We assume the tax rate is of 34%

So, the deferred tax expense is

= $30,000 × 34%

= $10,200

By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above

3 0

3 years ago

During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw

user100 [1]

Answer:

Debit to work in process for $79,000

Explanation:

The journal entry is shown below:

Work in process Dr $79,000

To Direct material $79,000

(Being requistion from the storeroom is recorded)

Here work in process is debited as it increased the assets and credited the direct material as it decreased the assets

Working note

Total material requisitions. = $ 83,000

Less : Indirect material. =. ($ 4000)

Direct material $79,000

3 0

3 years ago