1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zysi [14]
3 years ago
9

Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c

ash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2016. A 2-for-1 stock split was granted on July 5, 2016. What is the 2016 basic earnings per share?
A. $.56B. $.53C. $.42D. $.47
Business
1 answer:
PSYCHO15rus [73]3 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

Preferred dividend = 2,000

Outstanding common stock:

= (40,000 × 2) + (10,000 × 6/12 × 2)

= 80,000 + 10,000

= 90,000

2016 basic earnings per share:

= (Net income - Preferred dividend) ÷ Outstanding common stock

= (50,000 - 2,000) ÷ 90,000

= 48,000 ÷ 90,000

= $0.53 per share

Therefore, the 2016 basic earnings per share is $0.53.

You might be interested in
During January, LexPro Co., which maintains a perpetual inventory system, recorded the following information pertaining to its i
diamong [38]

Answer:

$3,225

Explanation:

The computation of the amount reported as an ending inventory is shown below:

Date Particulars Units   Cost Amount                

1 -1        Op Balance     1,000         $1            $1,000  

1 -7         Purchases      600          $3             $1,800

Total                              1,600    $1.75         $2,800  

                                              ($2,800 ÷ 1,600 units)  

1 -20 COGS           900      $1.75            $1,575

Total                              700     $1.75            $1,225

1 -25       Purchases     400     $5                 $2,000

Ending inventory         1,100    $2.9318       $3,225

                                                  ($3,225 ÷ 1,100 units)  

We simply added the purchase units with the opening balance and deduct the cost of goods sold units from the opening balance so that the correct ending inventory amount could arrive

3 0
3 years ago
What is an easy way to convert an hourly wage into an approximate full-time annual wage?
polet [3.4K]
Convert Hours per shift into total days worked for a week then convert it into total 365 - Days working + Hourly Pay
8 0
3 years ago
Retailers may use online liquidators to address the problem of ________. A) distressed inventory B) shopping cart abandonment C)
Verizon [17]

Answer:

The correct answer is the option A: distressed inventory.

Explanation:

To begin with, in the field of business management and marketing as well, the term of "distressed inventory" refers to the situation where the company has for a long time its products that are not being sell and for that reason the inventory is getting stuck in the business without obtaining profits from that situation. Therefore that in order to address that problem the marketing department alongside with the head manager should start online liquidators to increase the number of sales of those products.

4 0
3 years ago
A deadweight loss is a consequence of a tax on a good because the tax a. induces the government to increase its expenditures. b.
zalisa [80]

Answer:

B) induces buyers to consume less, and sellers to produce less.

Explanation:

Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

But once a market assumes all the effects of existing taxes it reaches an equilibrium price that both consumers and producers are satisfied with. If a new tax is levied than the deadweight losses are greater since consumer surplus and producer surplus are both reduced. This will lead to a reduction in the incentive that both consumers and producers have to engage in transactions. Many times consumers will substitute heavily taxed goods for other goods since they feel they are getting more from consuming those goods (consumer surplus). The same happens to producers, many producers will change their heavily taxed goods for other goods.

If the price elasticity of demand or supply of a certain good is large (elastic demand and supply), the deadweight loss will be greater.

7 0
3 years ago
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
True [87]

Answer:

Overheads cost allocated to Mossman Job  = $449

Explanation:

We have been provided the cost of each activity and their respective drivers.

There are three activities

Supervision of Direct Labor = $304,000 for 760,000 labor hours

Machine Maintenance = $153,600 for 960,000 hours

Facility rent = $165,000 for 110,000 square feet

Activities of Mossman Job and respective costs will be as follows:

Supervision of Direct Labor = $304,000/760,000 X 260 labor hours = $104

Machine Maintenance = $153,600/960,000 X 1,500 = $240

Facility Rent = $165,000/110,000 X 70 = $105

Net Overheads cost allocated to Mossman Job = $104 + $240 + $105 = $449

6 0
3 years ago
Other questions:
  • You are a loan officer at a bank. An applicant comes to
    10·1 answer
  • MC Qu. 112 A company is considering... A company is considering the purchase of new equipment for $105,000. The projected annual
    15·1 answer
  • Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming yea
    9·1 answer
  • In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazine
    5·1 answer
  • 3 Select the correct answer. Tracy applied for a home loan from her bank. The bank is willing to give her the loan but at a very
    8·1 answer
  • Suppose at the end of the meeting that Jack agrees to offer the restaurant buyout, including the non-competition agreement. Prio
    5·1 answer
  • 4. would protect the composer's musical score.
    14·2 answers
  • What is the preferred method of resolving a partner's deficit balance, according to the Uniform Partnership Act?
    5·1 answer
  • 4. the interest is computed on the principal and also on the accumulated past interests.
    12·1 answer
  • Balthazar Corporation has total assets of 582, total equity of 269, and a return on equity of 13.98%. The ROA for Balthazar is__
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!