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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.

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What is another way to express class rank?
Vadim26 [7]

Answer:

The answer is C.

Explanation:

Class rank is a measure of how a student's performance compares to other students in his or her class. It is commonly also expressed as a percentile.

8 0
3 years ago
Read 2 more answers
A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale
alexandr402 [8]

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit  

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

4 0
3 years ago
What is 4 P's in entrepreneur​
leva [86]

Answer:

passion, persistence, perseverance, and preparation

Explanation:

6 0
3 years ago
The financial statements of the Pharoah Company report net sales of $372000 and accounts receivable of $56400 and $27600 at the
snow_lady [41]

Answer:

the average collection period for accounts receivables is 41.2 days

Explanation:

Average Collection Period measures the amount of time it takes to collect credit from accounts owing.

Average Collection Period = Average Accounts Receivables / (Sales/365)

                                            =(($27600+ $56400)/2) / ( $372000/365)

                                            = $42,000/1019.178082

                                            = 41.20967742

                                            = 41.2 days

                             

8 0
3 years ago
Read 2 more answers
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of rec
Gre4nikov [31]

Answer:

a. 5% of $ 650,000=     $ 32,500

b. Required Adjustment  = $ 19,100

c. Required Adjustment  = $ 34,900

Explanation:

             Days Past Due

         Total           0                1 to 30          31 to 60      61 to 90         Over 90

Accounts- $650,000 $412,000 $106,000 $52,000 $34,000 $46,000

receivable

             

Percent-                          2%          3%             6%                8%               11%

uncollectible    22,320    8,240      3180         3120          2720            5060  

a. 5% of $ 650,000=     $ 32,500

B . Unadjusted Balance = $ 13,400 Credit

    Estimated Balance= $ 32,500

Required Adjustment  = $ 19,100

C. Unadjusted Balance = $ 2,400 Debit

        Estimated Balance= $ 32,500

Required Adjustment  = $ 34,900

4 0
3 years ago
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