Thrifty Co. reported net income of $573,650 for its fiscal year ended January 31, 2020. At the beginning of that fiscal year, 100,000 shares of common stock were outstanding. On October 31, 2019, an additional 30,000 shares were issued. No other changes in common shares outstanding occurred during the year. Also during the year, the company paid the annual dividend on the 40,000 shares of 6%, $50 par value preferred stock that were outstanding the entire year.
Required:
a. Calculate basic earnings per share of common stock for year ended January 31, 2020.
b. If Thrifty Co.’s preferred stock were convertible into common stock, what additional calculation would be required?
Answers
Answer:
a. The basic earnings per share of common stock for year ended January 31, 2020 is $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.
Explanation:
a. In order to calculate the BEPS we would have to use the following formula:
BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock
Net income available to common stockholders=$573,650
Weighted Avg. no. of common stock = 100,000 + (30,000 x 3/12)
Weighted Avg. no. of common stock = 107,500
BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock
BEPS = $573,650 / 107,500
BEPS= $3.56 per share
b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.
Related Questions
Sự gia tăng về giá cả một loại hàng hóa nào đó không chắc chắn là sự gia tăng của lạm phát.đúng hay sai?
Answers
a company had no office supplies available at the beginning of the year. during the year, the company purchased $370 worth of office supplies. on december 31, $125 worth of office supplies remained. how much should the company report as office supplies expense for the year
Answers
Supplies expense = Supplies purchased during the period - Ending balance of supplies on hand
= 370-125
= $ 245
A company had no office supplies available at the beginning of the year. during the year, the company purchased $370 worth of office supplies. on december 31, $125 worth of office supplies remained. The company report $245 as office supplies expense for the year.
What do you mean by Company?A company is a legal body created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate legislation of its jurisdiction, a corporation may be set up in a variety of ways for tax and financial liability reasons.
Supplies expense = Supplies purchased during the period - Ending balance of supplies on hand
Supplies expense = 370-125
Supplies expense = $ 245
Therefore, $245 is reported by the company as office supplies expense for the year.
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A misconception is a misunderstanding.
O True
False
Answers
The statement ''A misconception is a misunderstanding.'' is True. A misconception refers to a misunderstanding or a mistaken belief about something.
It is a cognitive error where an individual holds an incorrect understanding of a particular concept, idea, or situation. Misconceptions can arise due to various factors such as incomplete information, misinterpretation of information, cultural influences, biases, or a lack of critical thinking. Misconceptions can be found in various domains, including science, history, language, and everyday life. They can persist even in the presence of contradictory evidence or when confronted with accurate information. Correcting misconceptions is important as they can lead to flawed decision-making, misinformation spreading, and hinder personal and intellectual growth.
Addressing misconceptions requires effective communication, education, and the promotion of critical thinking skills. By challenging and correcting misconceptions, individuals can develop a more accurate understanding of the world around them, make informed judgments, and engage in meaningful discussions based on reliable information.
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Suppose a monopolist produces in a market with two distinct segments: market 1, which is denoted as M1 on the graph, and market 2, denoted as M2. The firm's marginal and average costs are $20.
Answers
A monopolist is an individual, gathering, or organization that controls each of the business sectors for a specific decent or administration. The profit in market 1 is $1,600, The profit in market 2 is $450 and Demand is more elastic in market 2
(A) Profit = Total revenue - total cost = P*Q - MC*Q = (P-MC)*Q
Profit in market 1
P1 = $60, Q1 = 40, and MC = $20
So, Profit in market 1 = (60-20)*40 = 40*40 = $1,600
(B) Profit in market 2
P2 = $35, Q2 = 30, and MC = $20
So, Profit in market 2 = (35-20)*30 = 15*30 = $450
(C) Demand is more elastic in market 2 as a monopolist charges a lower price in the more elastic market so as P2 < P1 then market 2 is more elastic.
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This question is not complete, Here I am attaching the complete question: also, attaching the diagram
Suppose a monopolist produces in a market with two distinct segments: market 1, which is denoted as M1 on the graph, and market 2, denoted as M2. The firm's marginal and average costs are $20.
(A) What is the profit of market 1?
(B) What is the profit of market 2?
(C) In which market is demand more elastic?
Most people in the US own stocks or bonds primarily through
Answers
Answer:
There 401k or other retirement accounts
Explanation:
most people are provided these through there jobs and are provided so they do not have to do any research themselves
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: DepartmentDirect costsS1 S2 P1 P2 S1$66,000 0.70 0.10 0.20 S2$161,000 0.20 0.30 0.50 P1$166,000 P2$233,000 Under the step method of cost allocation, the amount of S2 costs allocated to S1 would be:
Answers
Answer:
$46,200
Explanation:
Calculation to determine the amount of S2 costs allocated to S1
S2 costs allocated to S1 =$66,000*0.70/(0.70 +0.10+ 0.20)
S2 costs allocated to S1 =$46,200/1.00
S2 costs allocated to S1 =$46,200
Therefore Under the step method of cost allocation, the amount of S2 costs allocated to S1 would be:$45,200
Which product is an athlete more likely to endorse?
A.
wine
B.
fast food
C.
sports drink
D.
tobacco products
Answers
Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
(Dollars)
Quantity (Dollars)
0
1
2
3
4
5
6
7
5
6
8
11
15
20
26
35
05
06
07
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
6
12
18
24
30
36
42
AAAAAAA
Profit
(Dollars)
In order to maximize profit, how many units should the firm produce? Check all that apply.
04
Answers
The solution to the given question when we consider total cost and total revenue, given in the following table:
The Financial TableQuantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue | Profit
------- | -------- | -------- | -------- | -------- | --------
0 | 5 | 5 | 0 | 0 | -5
1 | 11 | 6 | 6 | 6 | 1
2 | 17 | 6 | 12 | 6 | 5
3 | 24 | 7 | 18 | 6 | 4
4 | 31 | 8 | 24 | 6 | -7
5 | 39 | 8 | 30 | 6 | -9
6 | 47 | 8 | 36 | 6 | -11
7 | 55 | 8 | 42 | 6 | -13
As you can see, the firm's profit is maximized at quantity 3. This is because the marginal revenue is equal to zero at this point, which means that the firm is not making any additional profit by producing more units. In fact, if the firm produces more units, it will actually start to lose money.
Therefore, the answer to the question is 3.
In summary:
The firm's profit is maximized at quantity 3.This is because the marginal revenue is equal to zero at this point.If the firm produces more units, it will start to lose money.Therefore, the answer to the question is 3.Read more about marginal revenue here:
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Bill Converse of Rexburg, Idaho, recently had his truck slide off a gravel road and strike a tree. Bill's vehicle suffered $17,800 in damage. The truck has a book value of $45,000. Bill carried collision insurance with a $400 deductible. How much will Bill be reimbursed by his policy
Answers
Answer:
$17,400
Explanation:
Deductible in Insurance is the level of an amount of which the loss payable must reach before the insurance company will participate in compensating for the full sum assured. Any loss payable (claim) below the Deductible amount will not be compensated by the Insurance company and if it exceeds the deductible, deductible amount will be deducted from the claim amount
Here, there is $400 deductible. Amount to be reimbursed = Damages -Deductible amount = $17,800 - $400 = $17,400
One of the most important features of a filing and record keeping system is that it works for you and meets your needs
Answers
Answer:
A Filing system
Explanation:
offers quick and easy filing and retrieval of information.
Select the correct answer.
In terms of market research, which statement describes an advantage for businesses?
O Market research agencies always collect accurate market information, regardless of their client's guidance.
O Secondary sources are inexpensive and can meet any business's market research needs.
O Primary research methods, such as interviews, are highly reliable because respondents always give their honest opinions.
A business can explore new market opportunities with the help of accurate market research data.
Submit
Answers
Answer: A business can explore new market opportunities with the help of accurate market research data.
Explanation:
When market research data is accurate, a business is better able to know what consumers want and can therefore explore new opportunities to satisfy these needs and make healthy returns as a result.
If market research data is poor however, companies run the risk of either investing in a loss making venture or not investing in a potentially profitable venture because they did not know how profitable it would be.
Sarah is having a hard time finding a template for her advertising business that she may be able to use at a later date and also make it available to her colleagues.
Answers
Answer:
The advertising business could use Sarah's template and give it to her colleagues and sell it out to everyone.
Explanation:
She can then use the other templates for a later date and make it availbale to her colleagues whenever they need it.
A: creating a custom template
I need to do this writing assignment for English business. Can you help me with that?
Answers
In English business writing, clarity and conciseness are important aspects that must be considered. The purpose of business writing is to effectively convey a message to a specific audience, be it clients, employees, stakeholders, or other businesses.
Business writing must be engaging, yet professional. It should be written with a clear understanding of the target audience and the intended purpose of the message. Before writing, it's essential to consider the following factors: What is the objective of the message? Who is the intended audience? What is the tone of the message? What is the call to action?
The format and tone of business writing are usually formal. It's important to avoid using jargon, complex sentences, and other technical terminologies that may not be understood by the audience. Simplicity is key when it comes to business writing. The use of active voice and short sentences will make the message clear and concise. Business writing should have a clear introduction, body, and conclusion. In the introduction, the main point of the message should be stated, followed by the body where more details about the topic are provided.
In the conclusion, the call to action should be clearly stated. The message should end with a polite and friendly tone, inviting further communication and showing appreciation for the audience's attention.
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The following information is budgeted for McCracken Plumbing Supply Corporation for next quarter:
April May June
Sales $110,000 $130,000 $180,000
Merchandise purchases $85,000 $92,000 $105,000
Selling and administrative expenses $50,000 $50,000 $50,000
All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end.
Required:
Prepare McCracken's cash budget for May. McCracken expects to have $24,000 of cash on hand at the beginning of May.
Answers
Answer:
McCracken's Cash Budget for May:
Beginning Cash balance
Cash Sales: 40% month of sale = $52,000
58% following month of sale = $63,800 $115,800
Cash Purchases: month following purchase = ($85,000)
Selling & Administrative Expenses = ($42,000)
Bank Notes = $27,000
Cash Balance = $15,800
Explanation:
a) Cash Budget is an estimate of the cash receipts and cash payments during a period of time.
b) Depreciation of $8,000 is not a cash payment, so this amount is deducted from the Selling and Administrative Expenses.
c) The bank notes are in multiples of $1,000. To maintain a cash balance of at least $15,000 for each month, McCracken needed to borrow $1,000 bank loan in 27 notes.
You work in a company that has begun selling annual subscriptions to its new online magazine. During December, the company sold the first subscriptions, receiving $600,000, which represents one-fifth of its revenues from all sources for the year. The entire amount has been collected in cash. As the end of the the year approaches, you notice that the company recorded the entire $600,000 to revenue and there is no plan to make an adjusting entry.
Draft a memo around two paragraphs in length to your supervisor, which explains the following:
The accounting error that has been made
The effect this error will have on the financial statements dated at the end of December
The problems that might result
The importance of fixing the error and what needs to be done to fix the error
Make sure to include proper grammar, spelling, etc.
Answers
The memo will indicate the accounting error that has been made and its effect on the financial statements.
The amount of $600,000 collected from the sale of the annual subscription to the new online magazine is the amount that was collected for the upcoming period of 12 months which will start by December of the current year.
Only $50000 of the amount will be recorded for the year. The related services for the remaining eleven months will then be $550000 and this should be reported as the unearned revenue.
The effect of the error is that there'll be an overstating of the net income or the current period by an amount of $550000 and there'll also be an understatement of the current liabilities by $550000.
In conclusion, the error needs to be fixed by debiting the revenue by $550000 and then crediting the unearned revenue by $550000.
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"Put the five project management process groupsin order from the one that generally requires theleast work to the one that requires the most."
Answers
According to the acquired needs theory, the need for power refers to the desire to:
Answers
According to the acquired needs theory, the need for power refers to the desire to an influence or control others and have authority over others.
What is the acquired needs theory?The phrase "Acquired needs theory" is a term created by a psychologist David McClelland, the theory is also known the McClelland's Needs Theory, Three-Needs theory, Achievement Motivation Theory or Learned Needs theory.
This psychological theory is based on the notion that people's needs are acquired as they live their lives or through experiences of life. It also emphasize that the needs are derived from the reaction to the stimuli in the external environment.
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What will produce more accurate results when giving a survey?
A. Using the word "frequently" in a question
B. Creating face-to-face interviews
C. Adding boxes to check for answers
D. Creating an open questions
Answers
Answer:
Option B; Creating face-to-face interviews
Explanation:
Research has shown that face-to-face interviews tend to produce more accurate results when giving a survey. So the correct answer is option B.
Suppose the Federal Reserve sets the reserve requirement at 14%, banks hold no excess reserves, and no additional currency is held. Instructions: In part a, round your answer to 1 decimal place. In parts b and c, enter your answers as a whole number. If you are entering a negative number include a minus sign. a. What is the money multiplier
Answers
Answer:
7.1%
Explanation:
Money multiplier measures the total increase in money multiplier
Money multiplier =1 / reserve requirement
1 / 14% = 7,1%
Phân tích việc Chính phủ sử dụng chính sách tài khóa tác động như thế nào đến nền kinh tế trong đại dịch
Answers
Answer: Chính phủ sẽ can thiệp bằng cách dùng gói cứu trợ và nới lỏng thuế cho cá nhân, hộ gia đình, và các doanh nghiệp
Explanation: gói cứu trợ cho hộ gia đình, các kinh doanh nhỏ, vừa và cả lớn để kích thích nền kinh tế, tăng tổng nguồn cung của đất nước đó. Mặt khác, các cá nhân, hộ gia đình cũng sẽ tăng nhu cầu khi được cứu trợ thêm lương và các khoản chi tiêu khác, giúp nền kinh tế hoạt động trở lại trong đại dịch. Bên cạnh đó, các thuế cũng được giảm xuống để thu hút cá nhân, doanh nghiệp, và các ngành công nghiệp khác đầu tư vào nguồn nhân lực, cơ sở hạ tầng, cũng từ đó tạo thêm được nhiều việc làm cho nhiều công nhân. Chính Phủ cũng có thể đầu tư số tiền vào các dịch vụ công như là xây dựng đường xá, cầu vượt, giúp tăng thêm việc làm và nguồn thu nhập cho người dân, dẫn đến việc hiệu ứng nhân đôi kép. Tất cả những việc này sẽ giúp cho nền kinh tế của một quốc gia hồi phục nền kinh tế bằng sự can thiệp của Chính Phủ và nới lỏng thuế.
You are studying to be an accountant. During school breaks, you work part-time at a large company that sells its stock on the stock exchange. To help you understand how investments work, you bought 100 shares of stock in this company.
While doing the bookkeeping, you discover the company just had a very bad financial quarter. You anticipate the price for the company stock will fall substantially once that information is made public. You decide to sell your shares immediately to avoid a significant loss. You direct your stockbroker to sell your stocks and are able to complete the transaction before this news gets out.
Have you done anything illegal by selling your stock when you did?
A. No, you are entitled to utilize all information available when deciding whether to buy or sell stock.
B. Yes, it is illegal for an employee of a company to buy or sell company stock.
C. No, shareholders can sell or buy stock anytime they wish.
D. Yes, you will be liable for insider trading based on the misappropriation theory.
Answers
Misappropriation theory states that when an individual uses insider information in trading securities has therefore committed securities fraud against the information source. Therefore, Yes, you will be liable for insider trading based on the misappropriation theory.
In the United States, a person who is guilty based on the misappropriation theory can be convicted of insider trading.An individual is said to be guilty of insider trading when they have acted on privileged knowledge in order to make a profit.
Conclusively, she is guilty as she uses the information obtained from the financial books to her advantage.
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Walmart and Target are the only stores in a remote town that currently stock and sell the PlayStation 5 video game console. Managers at both stores are simultaneously deciding whether to charge a price of $1,000 or $1,500 for each console. If both stores charge $1,000, they earn a profit of $100,000 each. If both stores charge $1,500, they earn a profit of $200,000 each. If one store charges $1,000 and the other store charges $1,500, the store that charges $1,000 earns a profit of $250,000 and the firm that charges $1,500 earns a profit of $50,000. If Walmart and Target ________, they can both charge $1,500 and earn the highest combined profit available.
Answers
Answer:
collude with each other
Explanation:
A monopoly market structure is the structure in which the chances of high profit are there. In the case when the two firms and they work together so that the can extract the maximum profits and after that they shared themselves
As in the given question, in the case when Walmart and Target collude with each other so they would charge $1.500 and earned highest profit available
The same would be considered
What do Macabacus’ Error Wrap shortcuts do?
Answers
Answer:Adjust formulas of selected cells to replace errors from existing formulas with custom error messages or values using an IFERROR wrapper
Explanation:
In June 2016, you travel to France on vacation and stayed at a hotel in Paris. In January 2018, you took another trip to the same hotel for the same number of nights. The price of the room was 300 euros per night, the same as it was on your 2016 trip. The cost of your hotel bill on the 2018 trip (in U.S. dollars) compared to the cost of the 2016 trip was _____.
Answers
In 2018, your hotel bill in dollars compared to the cost in 2016 would have been more.
Why would the cost be higher?In the year 2016 the U.S. dollar could buy more Euros that it could in the year 2018.This means that the Euro got stronger.
With the Euro being stronger in 2018 than it was in 2016, spending in Euros would attract more U.S. dollars being spent so the cost of the hotel bill would have been more in 2018.
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analyse how entrepreneurs could use culture on current e business platforms
Answers
Entrepreneurs could leverage culture on e-business platforms by incorporating cultural elements into their branding, marketing, and user experience.
What example best describes this?For example, they could use culturally relevant visuals, symbols, and language to appeal to their target audience. They could also tailor their products and services to meet the unique needs and preferences of different cultural groups.
Additionally, entrepreneurs could engage with their audience through culturally relevant content, such as blog posts, social media updates, and videos. By doing so, they can create a sense of community and foster a deeper connection with their customers.
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bruin manufacturing has expected ebit of $26,000 in perpetuity. a tax rat 35% and debt equity ratio of 60 percent. the firm has $60,000 in outstanding debt at an interest rate of 8percent and its wacc is 12 percent. what is the value of the firm according to m&m proposition 1 with taxes?. should bruin change its debt-equity ratio if the goal is to maximize the value of the firm? explain.
Answers
The value of the firm according to M&M proposition 1 with taxes will be as follows,
WACC = .12 = (100/160)RE+ (60/160)(.08)(.65) ;RE= .1608
RE= .1608 = RU+ (RU– .08)(.6)(.65) ;RU= .1381
VU= EBIT(1 – t)/RU= ($26,000)(.65)/.1381 = $122,348.96
VL= VU+ Dt = $122,348.96 + .35D = $140,833.33
Or
VL= EBIT(1 – t)/WACC = ($26,000)(.65)/.12
= $140,833.33
What is M&M proposition?Miller and Modigliani theory mentions two propositions. Proposition I state that the market value of any firm is independent of the amount of debt or equity in capital structure. Proposition II states that the cost of equity is directly related and incremental to the percentage of debt in the capital structure.
B) Applying M&M Proposition with tax the capitals, the firm has increased its value by issuing debt. As long as M&M Proposition holds, that is, there are no bankruptcy costs and so then the company should continue to increase its debt equity ratio to maximize the value of the firm.
Thus, the value of the firm according to M&M proposition 1 with taxes will be $140,833.33.
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Which economic system allows for private ownership of property and resources?
Question 1 options:
Free Market
Command
Traditional
Restrictive
Answers
The economic system that allows for private ownership of property and resources is the Free Market system.
What is difference between free market system and traditional system ?
"Free market", "traditional", and "restrictive" are three different terms that describe different economic systems or policies.
A free market system is an economic system in which the prices of goods and services are determined by supply and demand without significant government intervention. In a free market, individuals and businesses have the freedom to own and control property, resources, and means of production, and are free to produce, sell, and consume goods and services as they see fit.
A traditional economic system is an economic system that relies on customs, traditions, and beliefs to allocate resources and determine economic activity. In a traditional economy, production and distribution of goods and services is based on inherited customs and traditions, with little room for innovation or change.
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Based on the investor expectations of earning at least 12%, should this project show in A39 through H40 be completed?
Answers
Since the investor expectations of the earning at least 12%, because the total NPV is positive,it indicates that the project's cash flows are expected to generate a return higher than the discount rate of 12%. Thus, the reason the project is recommended for investment.
What is the explanation for this?Using a discount rate of 12%,we can calculate the NPV of the cash flows for each year -
Year 0- NPV = -133,000 / (1 + 0.12)⁰ = -133,000
Year 1 - NPV = 37,000 / (1 + 0.12) ¹ = 33,036
Year 2 - NPV = 42,750 /(1 +0.12 )² = 34,424
Year 3 - NPV = 44,000 / (1 + 0.12)³ = 32,259
Year 4 - NPV = 46,500 / (1 + 0.12)⁴ = 30,376
Year 5 - NPV= 82,500 / (1 + 0.12)⁵ = 52,383
Year 6 - NPV =77,000 / (1 + 0.12)⁶ = 42,240
To calculate the total NPV,we sum up the NPV values for each year -
Total NPV = -133,000 + 33,036 + 34,424 + 32,259 + 30,376 + 52,383 + 42,240 = $91,718
Thus, the project is recommended for investment because the NPV is higher than the discount rate.
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Full Question:
Based on the investor expectations of earning at least 12%, should this projected below be completed?
Year 0 1 2 3 4 5 6
Cash Flow (133,000) 37,000 42,750 44,000 46,500 82,500 77,000
Please explain why or why not the company should move forward with this endeavor.
__________ technology uses a continuous Internet connection that allows users to send and receive mammoth files that include voice, video, and data much faster than ever before.
Answers
Broadband technology is the technology uses a continuous Internet connection that allows users to send and receive mammoth files that include voice, video, and data much faster than ever before.
What is Broadband technology ?Broadband technology, can be desceibed as the technology which involves the telecommunications devices, as well as the lines, or which allow communication over a wide band.
It shoud be noted that this technology make use of broad of frequencies, which do encompass the range of frequencies having differnt independent channels which is been used for ransmission.
In conclsion the technology that is been described above is ben used in the process of receiving mammoth files which could encompass voice, video and it is been used by the indivduals as well as the organization that run business with customers around the world or within the country.
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What are the two ends of the continuum of economic systems?
O A) Trade deficit; Trade surplus
B) Communism; Pure Competition
C) Small GDP; Large GDP
D) Goods-oriented; Service-oriented
Answers
The two ends of the continuum of economic systems are Communism and Pure Competition.
What is an economic continuum?Economic Continuum is defined as a range with no clear divisions. On one end of the economic continuum is centrally planned governments and on the other end is the free market.
What are economic systems?The two major economic systems in modern societies are capitalism and socialism.
What is Pure Competition?Capitalism or Pure Competition is an economic system in which the trade and industry of the economy is owned and controlled by private individuals, to make profit.
What is Communism?Communism or Socialism refers to social system in which country's trade and industry are controlled by the community and the share of each individual relies on his ability and needs.
In practice, no one society is purely capitalist or socialist, so it is helpful to think of capitalism and socialism as lying on opposite ends of a continuum.
So the answer is B.
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