Faucet Company has 2,500,000 shares of common stock outstanding on December 31, year 1. An additional 500,000 shares of common stock were issued on April 1, year 2, and 250,000 more on July 1, year 2. On October 1, year 2, Faucet issued 5,000, $1,000 face value, 7% convertible bonds. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in year 2. What is the number of shares to be used in computing basic earnings per share and diluted earnings per share, respectively, for the year ended December 31, year 2?
Answers
Answer:
Number of Shares for Basic Earnings per Share = 3,000,000
Number of Shares for Diluted Earnings per Share = 3,200,000
Explanation:
Basic Earnings per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares
Weighted Average Number of Common Shares
Common Shares Outstanding - December 31, year 1 2,500,000
April 1, Year 2 Issue, 9/12× 500,000 375,000
July 1, Year 2 Issue, 6/12× 250,000 125,000
Number of Shares for Basic Earnings per Share 3,000,000
Diluted Earnings per Share =Adjusted Earnings Attributable to Holders of Common Stock /Adjusted Weighted Average Number of Common Shares
Adjusted Weighted Average Number of Common Shares
Number of Shares for Basic Earnings per Share 3,000,000
Add 7% convertible bonds (5,000×40 shares) 200,000
Number of Shares for Diluted Earnings per Share 3,200,000
Final answer:
To compute basic earnings per share (EPS) and diluted earnings per share for the year ended December 31, year 2, we need to consider the weighted average number of shares outstanding during the year. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 for the next six months, and finally 3,250,000 for the last three months. For diluted EPS, we would use the same number of shares as the basic EPS calculation.
Explanation:
To compute basic earnings per share (EPS), we need to consider the weighted average number of shares outstanding during the year. For this, we calculate the number of months each share was outstanding and then multiply it by the number of shares for that period. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 (2,500,000 + 500,000) for the next six months, and finally 3,250,000 (2,500,000 + 500,000 + 250,000) for the last three months.
For diluted EPS, we need to consider the potential dilutive effect of convertible bonds. Since no bonds were converted into common stock, the number of shares to be used in computing diluted EPS would be the same as the basic EPS calculation.
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Answers
Answer:
Job 334 total cost: $ 8,400
Unit cost: 8,400 / 200 = $ 42
Explanation:
Total cost: Material + Labor + Overhead
Material: 5,000
Labor: 2,400
Overhead:
We distribute the expected cost over the expected base:
expected cost: 100,000
cost driver: 40,000 labor hours
cost per hour: 100,000 / 40,000 = 2.5 predetermined overhead
Now we multiply this rate by the hours of the job to know Applied Overhead:
job labor hours x overhead rate:
Job #334 had 2,400 labor cost / $6 rate per hour = 400 hours
400 x 2.5 = 1,000
Total cost: 5,000 + 2,400 + 1,000 = 8,400
Variable costs per unit $ 17
Fixed costs per unit (based on capacity) $ 8
Capacity in units 56,000
Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 9,000 speakers per year. It has received a quote of $35 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits.Assume that the Audio Division is now selling only 49,000 speakers per year to outside customers. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division?
Answers
Answer:
The lower acceptable transfer price by Audio Division is variable cost of producing the extra unit which is $17. Producing to capacity will have no effect on the fixed cost because it will not change regardless on increase in production.
Explanation:
Answer:
.
Explanation:
The lowest acceptable movement price by Audio Division is shifting cost of making the more parts which are 17 dollars. making to capacity will have no effect on the fixed cost because it will not change regardless on increase in production.
Answers
Answer:
The correct answer to the following question will be "She enhanced her brand image".
Explanation:
- Keira dramatically improved her brand reputation by getting ready a logo to promote her unquantifiable facility of various dog walking the dog. Designed to enhance the brand identity requires connecting with the clients regarding your brand as well as trying to make your provider or good extra attractive to the users. That is among the most powerful advertising moves.
- Keira aims to grow its market here by generating more competition for its intangible growing organization. For all of this she chooses to help improve her brand value so that she can get so many requirements for her provider as well as make higher revenue.
So that the above is the right answer.
Markdown policy
Going-rate policy
Penetration policy
Answers
Answer:
The correct answer is letter "D": Penetration policy.
Explanation:
Penetration pricing refers to a strategy by which firms introduce their products at a price lower than the average in the market in an attempt of attracting the greater quantity of consumers possible and wiping out competitors. After the competition is removed, the entity plans to set the price of its good higher since it has the control of the market now assuming customers would not have found a substitute.
Answers
Answer:
The service sector grows because of the same reason that any other economy sector grows: the demand for it increases.
Explanation:
Demand increases because new services are created, or existing ones obtain more customers: a larger market share.
In the case of Amazon, the service it offers is deliveries, but Amazon took deliveries to its logical conclusion, becoming an online store that essentially sells everything, from books to car accessories, to fruits and vegetables.
Amazon has become a giant company because it exploited a existing market that had a lot of untapped potential, and customers at the same time responded by demanding even more of these services. In other words, Amazon and the customers formed a virtous cycle that feeds economic growth.
Answers
The payment to be received on July 15 should be equivalent to $800.
What are payments?
The amount received for the purpose served or promised to be served by a seller is known as a payment. Generally, discounts are offered for making early payments.
The discount offered for a period of 30 days cannot be redeemed for payment done within 15 days.
Thus, option D holds true that the payment of $800 shall be received on July 15.
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Final answer:
The terms 1/10, net 30, mean that the company is offered a 1% discount if they pay within 10 days. If they pay after this period, they have to pay the full amount. In this scenario, the payment on July 15 should be $800.
Explanation:
The invoice terms 1/10, net 30 mean that the company is offered a 1% discount if they pay the invoice within 10 days. After 10 days, the full invoice amount is due within 30 days. On July 1, the company receives an invoice for $800. If the company pays by July 10, they would only need to pay $792 ($800 - 1% of $800). If they wait until July 15, past the discount period, they will have to pay the full $800. Therefore the answer is $800.