XYZ Company had 200,000 shares of common stock outstanding on December 31, 2008. On July 1, 2009, XYZ issued an additional 50,000 shares for cash. On January 1, 2009, XYZ issued 20,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2009, XYZ paid the regular annual dividend on the preferred and common stock. Net income for the year was $300,000.
=
Calculate XYZ's basic and diluted earnings per share for 2009.
Answers
Answer: A. 0.89
B. 0.78
Explanation:
Outstanding common shares = 200,000
Additional shares = 50,000
Dividend = 0
Par value of preferred stock = $100
Net income = $300,000
a. The basic earnings per share will be:
= (Net income - Preferred dividend) / Weighted average number of shares
= [300000 - (20000 × $100 × 5%)] / (200,000 + 50,000 × 6/12)
= [300,000 - 100,000) / (200000 + 25000)
= 200,000 / 225,000
= 0.89
The diluted earnings per share will be:
= 300,000 / (200000 + 50000 × 6/12) + (20000 × 8)
= 300,000 / 200,000 + 25000 + 160,000
= 300,000 / 385,000
= 0.78
Related Questions
Which of these might be an example of an advertiser's target group?
Answers
The example of an advertiser's target group is B.people the advertisers know nothing about.
What is advertiser's target group?The target audience an be desribed as the specific group of consumers that is in the position whereby they are the most likely to want the product or service, ther is been advertised and they can be considered as the people who should see the ad campaigns.
Ity shouldbe noted that the Target audience can be seen by using the gender, income, location, as well as interests and age which could depend on the product that is been advertised to them them.
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missing options;
A.People who have no access to media
B.people the advertisers know nothing about
C. People who watch a variety of TV shows
D. People who live in the same region of the country
Sam promised to sell Linda a Welsh Corgi puppy for $300 but backed out of the deal. Linda sued Sam in state court for breach of contract. Linda asked for a jury in her complaint. During jury selection, one juror, Ann, said that she did not think they could be fair to Linda because Linda did not appear to be a dog lover. Linda asked that Ann not hear the case, and the judge excused Ann. Linda also decided that another juror, Sandy, looked at her in a grumpy manner so she asked the judge to excuse that juror from serving. The judge did so. After the jury was chosen, Linda made a statement to the jury, as did Sam. Linda then called to the witness stand a friend of hers, Brenda, who heard the discussion held between Linda and Sam regarding the purchase of the puppy. Brenda testified under questioning by Linda that she heard Linda say that she would pay $300 for the puppy and that she also heard Sam say that he would sell the dog for that amount. Unfortunately for Linda, Brenda also testified in response to questioning by Sam that Sam distinctly told Linda that he would only sell the puppy to her if Linda came with cash for the puppy within seven days. Linda did not show up with the money for ten days and Sam had already sold the dog to someone else. The judge ruled in favor of Sam. The challenge to the juror who seemed grumpy is referred to as a(n):_____.
a. peremptory challenge.
b. challenge for cause.
c. stipulated challenge.
d. fairness challenge.
e. approved challenge.
Answers
The challenge of Sandy's inclusion in the juror is referred to as A. peremptory challenge.
A peremptory challenge does not require any reason to be proffered. Therefore, Sandy's disqualification from the juror is based on peremptory challenge. The manner that Sandy looked at Linda does not necessarily give cause for Sandy to be biased in the case. But Linda may think otherwise, and can use a peremptory challenge to discard Sandy. Ann could reasonably be disqualified from the juror because she indicated her clear stance on Linda's case. As there is a challenge for cause, a reason must be offered. But the same cannot be said of Sandy's disqualification.Thus, the juror challenge helps Linda to discard or excuse Sandy and Ann from the panel so that her case can be fairly adjudicated.
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Dubey Companies Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2018.
Accounts Payable $ 850
Accounts Receivable 900
Accumulated Amortization 510
Accumulated Depreciation 1,140
Allowance for Doubtful Accounts 40
Cash and Cash Equivalents 1,040
Common Stock 480
Deferred Revenue 1,980
Equipment 7,630
Income Taxes Payable 40
Notes Payable (long-term) 2,770
Notes Receivable (long-term) 260
Prepaid Rent 280
Retained Earnings 7,270
Service Revenue 500
Short-Term Investments 4,050
Software 920
Required:
Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (One of the accounts does not belong on the balance sheet.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Answers
The classified balance sheet shows that the total liabilities and stockholders equity will be $13390.
How to explain the balance sheet?It should be noted that a classified balance sheet refers to a financial statement that has classifications like the current assets, liabilities, etc.
From the table that's attached, the total current assets is $6230 while the total assets is $13390.
For the liabilities, the total current liabilities is $2870 and the total liabilities is $5640.
Also, the total stockholders equity is $7750 and lastly, the total liabilities and stockholders equity is $13390.
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Which printing method is best for Bath Bomb Container?
Answers
Answer:
One of the most typical methods for Custom Bath Bomb Container is flexographic and offset printing. https://custompackagingpro.com/product/custom-printed-bath-bomb-packaging-boxes
Which type of credit is used to lease a building?
Answers
Answer:
service credit
Explanation:
At the end of 2011, the XYZ city deferred Br. 40,000 in property taxes, and that amount is reflected in the beginning balance sheet is recognized as revenue for 2012.
Answers
It is TRUE to state that at the end of 2011, the XYZ city deferred Br. 40,000 in property taxes, and that amount is reflected in the beginning balance sheet is recognized as revenue for 2012.
Why is tax deferred in property taxes recognized as revenue?Tax deferred in property taxes is recognized as revenue because it represents an obligation to the entity and will be collected in the future.
Investment earnings, such as interest, dividends, or capital gains, that grow tax-free until the investor takes constructive receipt of the profits, are referred to as tax-deferred status.
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Full Question:
At the end of 2011, the XYZ city deferred Br. 40,000 in property taxes, and that amount is reflected in the beginning balance sheet is recognized as revenue for 2012.
True or false?
Which QuickBooks Online report answers the common business question: "Who owes me money?"
Answers
Answer:
Accounts Receivable Aging report.
Explanation:
Because you're receiving money.
For 2022, the annual earnings for Blue Star Racing Equipment were $3,600,000.
The corporation has 3,584,600 shares of common stock outstanding and pays an annual dividend of $0.81 per share. The closing price for a share of common
stock was $36 last night. Calculate the following. (Round all answers to two decimal places if necessary.)
1. Current yield:
2. Earnings per share:
3. Price-earnings (PE) ratio:
Answers
There are currently 1,315,400 shares of the company's common stock outstanding, and each share receives a $0.92 yearly dividend. the common share's closing price
What are stock vs. shares?A share is a type of financial instrument that symbolizes a company's partial ownership. A stock is a type of financial instrument that denotes a stake in one or more companies. Two separate shares of the same corporation may have the same value.
What Do Stocks Mean?A security that denotes ownership of a portion of the issuing company is referred to as a stock, sometimes known as equity.
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Conduct Internet research and find whether your state levies inheritance tax. and how is it different from the federal inheritance tax.
Answers
Answer:
My state is Wisconsin, and Wisconsin does not levy a state inheritance tax, nor a estate tax, being one of the 34 states that do not levy any of these two taxes.
This is in contrast with the federal leve, because there is a federal inheritance tax, although with a quite high exemption of around 11 million for individuals, and of 22 million for married couples.
Answer:Inheritance tax is a tax that a person has to pay on money or property inherited after the death of a family member, loved one, and so on. This tax is sometimes referred to as a death tax. It is fundamentally a state tax.
In the federal inheritance or estate tax, the tax value depends on the fair market value of the inheritance. The amount is then levied on the representative of the estate. The taxable amount comes from the value of the estate. Then, the balance goes to the beneficiary of the estate.
As per the state inheritance tax, the beneficiary of the estate must pay the taxable amount. For example, if five family members inherit a property from a deceased relative, each member will individually pay tax on their share of the inheritance
Only eight states have inheritance taxes, these include Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania, and Tennessee. My state, the state of Texas, does not levy an inheritance tax. Even for states that do levy such taxes, many beneficiaries are exempt from the tax under various circumstances.
Explanation: plutos example after answering question so change it up a little dont use word for word.
Shareholders, customers, suppliers, and employee groups are considered
A. indirect stakeholders
B. convertible stakeholders
C. direct stakeholders
D. formal stakeholders
Answers
Answer: its “direcr stakeholders”
Explanation: bcs it is
The data given below are from the accounting records of the Kuhn Corporation:
Net Income (accrual basis) $45,000
Depreciation Expense $9,000
Decrease in Accounts Payable $2,500
Decrease in Inventory $3,000
Increase in Bonds Payable $10,000
Sale of Common Stock for cash $30,000
Increase in Accounts Receivable $4,500
Based on this information, the net cash provided by operating activities using the indirect method would be:__________.
a. $55,000
b. $58,000
c. $50,000
d. $60,000
Answers
The net cash provided by operating activities using the indirect method would be: c. $50,000.
Net Cash From Operating Activities
Net income $45,000
Depreciation expense $9,000
Decrease in accounts payable ($2,500)
Decrease in inventory $3,000
Increase in accounts receivable ($4,500)
Net cash provided by operating activities $50,000
Inconclusion the net cash provided by operating activities using the indirect method would be: c. $50,000.
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If the free market (private) equilibrium quantity is greater than the socially optimal quantity, one can infer that:
Answers
Answer:
The only that socially optimal quantity is lower than the equilibrium quantity is that the production of that specific good results in a negative externality. Negative externalities reduce social benefits of third parties, even though they do not actively participate in any type of transaction.
how important is it to be inclusive of language that is not standardized?
Answers
Answer:
Inclusive language seeks to treat all people with respect, dignity, and impartiality.
Explanation:
Language is one of the most powerful tools we have as humans. It binds us. Instructs us. When used well, it creates a common understanding.
And it’s essential for creating an environment where everyone feels welcome and included.
Historically, language has left many out. Individuals and groups have been marginalized and discriminated against because of their culture, race and ethnicity, gender, sexual orientation, age, disability, socioeconomic status, appearance and more.
We can do better. Inclusive language seeks to treat all people with respect, dignity, and impartiality. It is constructed to bring everyone into the group and exclude no one.
It does ask something of us. It asks us to try. To change deeply embedded habits. To consider the implications of words and phrases that have long gone unchallenged. To dig deep into empathy and imagine an experience not our own.
Some of these language changes might seem unnecessary or even silly to some.
A department is looking for an entry-level cashier. One of the job applicants is a cashier with 30 years of experience as a cashier. The department manager feels that this candidate is overqualified for the job and is likely to be bored and leave the job in a short time. Instead, they want to pursue a candidate with 6 months of work experience who seems like a better fit for the position.
Answers
The reason why the manager wants the person with 6 months of experience is the fact that a person with 30 years of experience is overqualified for an entry level position.
What is an entry level position?
An entry level position is a job that is designated for the people that have just left school.
The kind of people that are fitted for such positions are those that have just graduated from the university.
The person with 30 years of experience does not fit into this category.
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Explaining your business partner has decided he wants to merge your business-healthy foods-with former competitor beta burger. He’s told you about the advantages, but you’ve got your doubts. What possible disadvantages about the merger would you explain to your partner before you both make your decision?
Answers
Prior to deciding upon a merger with Beta Burger, certain potential drawbacks should be examined:
What possible disadvantages about the merger would you explain to your partner before you both make your decision?Brand Misrepresentation: Merging with a formerrival could bewilder patrons regarding the values of your business. They may possibly associate it with cheap fast-food outlets, conversely deterring those desirous of eating healthy meals.
Cultural Contradiction: Should the cultures at both companies be contrary in nature, it could result in arguments and an absence of collaboration among workers from either side. This discord could then have an adverse impact on morale and productivity for the staff.
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Regarding the historical development of employment law in the U.S., which of the following statements is true?Group of answer choicesOver time, most exceptions to employment at will have been eliminatedAll of the aboveMost employment laws were passed with little conflict, since the need for these laws was evident to employers, employees and legislators.Most federal employment laws were passed in the first half of the 19th century in response to growing industrializationThe earliest employment laws focused on racial discriminationNone of the above
Answers
The true statement is Most federal employment laws were passed in the first half of the 19th century in response to growing industrialization.
What is industrialization?
The transition of a human population from an agrarian society to an industrial one is known as industrialization. It is a part of a wider modernization process, where social change and economic development are closely related. It is the comprehensive management of an economy for manufacturing.. It is characterized by a transition from traditional manual labor to efficient machinery and mass production. Industrialization also involves creating an infrastructure of transportation networks, communication systems, and power plants. Industrialization has led to increased productivity and a higher standard of living for many people.
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Identify a product or service you personally have used that blew your mind and your experience as a customer. Use product & company information, published media, user and critique reviews etc and work backwards to trace its origin, history and development. Use course concepts and apply practices from innovation, creative design and system thinking to support your experience as a customer.
Answers
The Tesla Model S is a product or service you personally have used that blew your mind and your experience as a customer.
An electric car produced by Tesla, Inc. It has gained popularity for its innovative features and performance. Customers have been blown away by its advanced electric powertrain, long-range capabilities, and sleek design.
The Model S has received positive reviews from both users and critics, highlighting its acceleration, handling, and overall driving experience.
In terms of its origin and development, Tesla was founded in 2003 with a mission to accelerate the world's transition to sustainable energy.
The Model S was first introduced in 2012 and has undergone continuous improvements since then. Tesla's commitment to innovation, creative design, and systems thinking can be seen in the Model S's cutting-edge technologies, such as its Autopilot system and over-the-air software updates.
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The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2017
a. Unrecorded depreciation on the trucks at the end of the year is $8.231
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is $1,400.
1. Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 2017
2. Determine the capital amount to be reported on the December 31, 2017 balance sheet.
Answers
Answer:
Question 1
Part a
Debit : Depreciation $8.231
Credit : Accumulated Depreciation $8.231
Part b
Debit : Interest Expense $8,000
Credit : Long term notes payable $8,000
Part c
Debit : Office Supplies Expenses $ 500
Credit: Office Supplies $ 500
Question 2
Capital amount to be reported on the December 31, 2017 balance sheet is $170,551
Explanation:
See below the full question that i have attached
Calculation of Capital amount as at December 31, 2017
Balance before adjustments $187,282
Adjustments :
Depreciation ($8.231)
Interest Expense ($8,000)
Office Supplies Expenses ($ 500)
Balance after adjustments $170,551
Imagine that in 2019 the economy is in long run equilibrium. Then, stock prices rise more than expected and stay high for some time. Refer to scenario 33-2. In the long run, what happens to the expected price level and what impact does this have on wage bargaining?
graph: y= price level. 2 lines going up parallel to each other SRAS1 and SRAS2
x= Quantity Output. 2 lines going down parallel AD1 and AD2......
There is a line that goes in center from x (straight up) LRAS
SRAS1 and SRAS2 intersect with AD1 and AD2 at points A,B,C,D LRAS intersects at its A and C
Answers
In the long run, The expected price level rises. New wage contracts are negotiated at higher wages.
What are wages?Wages are payments made typically in cash in exchange for labor or services, typically on an hourly, daily, or piecework basis and in accordance with a contract.
The compensation or reward for labor is called a wage. Real wages and nominal wages are the two primary categories of earnings. Money earnings are referred to as "nominal wages." However, "real wages" refers to the goods and services that may be obtained with money earnings.
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Millie withdraws $1,000 from her checking account so she can have $1,000 in cash. If no other changes occur, M1 will
Answers
Answer:
M1 will not change
Explanation:
M1 is the money supply that is composed of physical currency , coin, demand deposits, travellers' checks, checking accounts, and negotiable order of withdrawal (NOW) accounts. M1 includes the most liquid of money supply.
Because checking account and cash are both components of M1, there would be no change in M1
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answers
Answer:
≈ 9644 quantity of card
Explanation:
given data:
n = 4 regions/areas
mean demand = 2300
standard deviation = 200
cost of card (c) = $0.5
selling price (p) = $3.75
salvage value of card ( v ) = $ 0
The optimal production quantity for the card can be calculated using this formula below
= u + z (0.8667 ) * б
= 9200 + 1.110926 * 400
≈ 9644 quantity of card
First we have to find u
u = n * mean demand
= 4 * 2300 = 9200
next we find the value of Z
Z = ( \(\frac{p-c}{p-v}\) )
= ( 3.75 - 0.5 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV (0.8667 )
next we find б
б = 200\(\sqrt{n}\) = 400
Blaine is not able to take an adjustment to income for: a. Lodging and meals b. Travel to/from duty station c. Uniforms d. Both a and b
Answers
Answer:
b. Travel to/from duty station
Explanation:
The IRS allows certain tax deductions, e.g. uniforms that are different to everyday normal clothes can be tax deductible, and lodging and meals when traveling for business purposes are also tax deductible. But commuting expenses, e.g. what you spend going to work every day is not tax deductible.
Which type of financial risk happens when the prices of things rise and fall?
income risk
You Answered
interest rate risk
personal risk
Correct Answer
inflation risk
CORRECT: inflation risk (please fix the ones on your site that are incorrect)
Answers
Answer:
The correct answer is inflation risk.
Explanation:
you got this!
00 For Market failures means that the market has not achieved its optimum production outcome. This means that it has not produced the correct quantity of goods and services. QUESTION 1 Conduct a research to any small business that is manufacturing goods in your community. Make an appointment to interview the owner for the purpose of collecting the information using the questionnaire below. 1.1 General information: ● Name of the firm / business Specify the type of goods or service ● ● Position of the person interviewed ● Date of the interview 1,2 Explain briefly the negative impact the following factors have in your business. (10) Lack of information: ● Price discrimination Immobility of factors of production with special reference to: Physical capital Structural changes ● ● (1) ● (1) (1) (1) [14] QUESTION 2: Interview 3-4 community members that reside near the business you have visited. 2.1 Ask them to name any TWO negative externalities and TWO positive externalities caused by the local business, (2 x 2) (4) 2.2 Request them to list any TWO characteristics of public goods. (2 x 1) (2) 2.3 Use the negative externality and positive externality graphs to explain the impact this business have to the society (10) [16]
Answers
The first step in researching a small business in your neighborhood is to find a suitable nearby manufacturing company.
Once you do, contact the manager or owner to arrange an interview. Gather general information during the interview, such as the name of the company or business, what types of products or services they provide, the interviewer's position, and the time and date of the interview.
Then, focus on the detrimental effects different situations can have on the company. Briefly describe the impact on business of informational gaps, price discrimination, immobility of production variables (with a focus on physical capital), and structural changes.
Interview three to four locals who live close to the establishment you just visited. Ask them to list two unfavorable and two beneficial externalities brought about by the neighborhood business. Ask them to add two properties of public goods to the list as well.
Finally, use the data from the interviews to create graphs showing the positive and negative externalities of business on society. These infographics will graphically describe the costs and benefits that the company's neighborhood has.
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Value-added" describes the economic enhancement a company gives its products or services and helps explain why companies are able to sell their goods or services for more than they cost to produce. Identify and explain some of the value-added services in Operations Management.
Answers
Answer:
One example of a value-added service in operations management would be the development of premium agricultural products like premium coffee or tea.
Explanation:
Agricultural products tend to be basic and cheap than most other goods because they are a basic necessity, meaning tha not only theird emand is high, but so is their supply, causing the market price of agricultural products to be relatively low.
If a company instead chooses to add value to its agricultural product, then, the company creates a product not only of higher value to both the company and its customers, but also in terms of price, that can therefore generate a higher revenue for the firm. Operations management is fundamental in this process because it deals with the production process of the product, which would go through several stages.
PLEASE HELP ASAP!!!!!
Type the correct answer in the box. Spell all words correctly.
At which stage of advertising is the customer motivated to take action?
The customer is motivated to take action at the
_______ stage of advertising.
Answers
Explanation:
I think 5 th stage is the correct answer
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The worst crash rate involving fatalities is in the age group of drivers ...
A. ages 21 to 25.
B. ages 19 years old and younger.
C. ages 75 and older.
Answers
Answer:
The age group with the most fatal crashes is drivers between the ages of 25 and 34. There are nearly 1,000 more deaths per year among 25- to 34-year-olds than drivers under 25.
The age group with the worst crash rate involving fatalities is generally the 19 years and younger group. This is largely due to factors like inexperience and risk-taking behavior. However, statistics can vary and elderly drivers can also have higher crash rates.
Explanation:Based on statistical data, the age group with the worst crash rate involving fatalities is typically B. ages 19 years old and younger. This is often due to a combination of inexperience, risk-taking behavior, and lack of maturity. However, it's important to note that numbers can vary slightly depending on the region and the specific year being considered. It's also worth mentioning that older drivers, specifically those ages 75 and older, can also have higher crash rates due to factors such as declining health conditions and slower reaction times.
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Perpetual Inventory Using LIFO
The following units of a particular item were available for sale during the calendar year:
I understand how to do jan. 1, apr. 19, and part of june 30. but the rest I cant figure out
Answers
LIFO (last-in, first-out) is a cost flow assumption used by firms to value their inventory, in which the last goods placed in inventory are the first items sold. As a result, the oldest acquired or generated inventory remains at the conclusion of the term.
Can LIFO be used on perpetual inventory system?The final expenses available at the moment of sale are the first to be withdrawn from the Inventory account and charged to the Cost of Goods Sold account under everlasting LIFO. We cannot wait till the end of the year to estimate the final cost because this is a perpetual system. (as is done with periodic LIFO).
Based on the given information, the schedule of cost of goods sold under LIFO method can be prepared as follows:
Date Quantity Unit Cost Total Cost Cost of Goods Sold Inventory Balance
Jan. 1 4,000 $40 $160,000 - $160,000
Apr. 19 2,500 $44 $110,000 $100,000 $70,000
June 30 2,500 $44 $110,000 - $180,000
Sept. 2 4,500 $46 $207,000 $187,500 $92,500
Nov. 15 2,000 $46 $92,000 $92,000 $500
To calculate the cost of goods sold and inventory balance, we use the LIFO method, which assumes that the last units purchased are the first to be sold.
On Jan. 1, the company had 4,000 units in inventory at a cost of $40 each, which gives a total inventory value of $160,000.
On Apr. 19, 2,500 units were sold. The most recent purchase was on June 30, when 4,500 units were purchased at a cost of $44 each. Since the most recent purchase was used up first, we assume that the cost of goods sold is based on these units, resulting in a cost of goods sold of 2,500 units x $44 = $110,000. The inventory balance is now 4,000 units (Jan. 1 inventory) - 2,500 units (sold) + 4,500 units (purchased) = 6,000 units at a total cost of $270,000. We assume that the units from the Jan. 1 inventory and the June 30 purchase are still in inventory at this point, but the units from the April 19 sale have been sold.
On June 30, 2,500 units were sold. The most recent purchase was on Nov. 15, when 2,000 units were purchased at a cost of $46 each. Since the most recent purchase was used up first, we assume that the cost of goods sold is based on these units, resulting in a cost of goods sold of 2,500 units x $46 = $115,000. The inventory balance is now 4,000 units (Jan. 1 inventory) + 4,500 units (June 30 purchase) - 2,500 units (sold) - 2,000 units (sold) = 4,000 units at a total cost of $184,000. We assume that the units from the Jan. 1 inventory and the June 30 and Nov. 15 purchases are still in inventory at this point, but the units from the April 19 and Sept. 2 sales have been sold.
On Sept. 2, 5,000 units were sold. The most recent purchase was on Nov. 15, when 2,000 units were purchased at a cost of $46 each. Since the most recent purchase was used up first, we assume that the cost of goods sold is based on these units, resulting in a cost of goods sold of 2,000 units x $46 = $92,000. The remaining 3,000 units sold are assumed to come
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you come across a 20 dollar bill laying on the ground, in a store. What would you do?
Answers
Answer:
uh i will take it and try to not feel guilty then later forget it and since i am so forgetful i will probably lose it
Explanation:
Northlands is a developed country in Europe; inflation in Northlands has been 4% per annum for each of the
last 3 years. CC Coffee is based in Northlands
CC Coffee was established in the mid-1990s by an entrepreneur who believed that consumers were willing to
pay more for better quality coffee. Coffee drinkers were spending increasing amounts in coffee shops in order
to enjoy good quality coffee while shopping or while commuting to or from work. CC Coffee grew rapidly and
the company now has more than 800 coffee shops throughout Northlands.
CC Coffee was listed on the Nothlands stock exchange in 2005.
CC Coffee works closely with major coffee growers around the world. CC Coffee uses mainly Arabica coffee
beans which are more expensive than other kinds but are very popular with coffee drinkers worldwide. CC
Coffee believes strongly in ethical trading and all of its marketing emphaises fair trading and ethical treatment
of suppliers and staff; this approach has proved popular with employees, customers and investors
In January 2022 all staff received a pay rise of 3.5%
Throughout 2023 CC Coffee upgraded the interiors of each of its coffee shops.
The financial statements of CC Coffee Plc. are provided below:
Statement of Financial Position 2023 2022
As at 31 December £million £million
Non-current assets:
Property, plant and equipment 2,124 1,026
Current assets:
Inventory 304 306
Trade receivables 254 249
Bank 260 265
818 820
Total assets 2,051 1,846
Equity:
Share capital 50 50
Retained earnings 1406 1206
2942 1256
Non current liabilities
Loans 857 619
Current liabilities:
Trade payables 629 590
Total equity and liabilities 2,942 1,846
Statement of profit or loss 2022 2021
For the year ended 31 December £million £million
Revenue 3,050 2,800
Cost of sales (1,555) (1,519)
Gross profit 1,495 1,281
Distribution costs (280) (260)
Administrative and marketing costs (670) (660)
Operating profit 545 361
Finance costs (33) (28)
512 333
Tax (46) (67)
Profit for the year 466 266
The 4 directors of CC Coffee were delighted with the trading results for
2022 and have awarded themselves a bonus of £1 million each.
Required: Prepare a 400 word report to the Board of CC Coffee covering the following:
1. For CC Coffee, explain and calculate the following Ratios for 2023 and 2022: Gross
Profit Margin, Operating Profit Margin, Current ratio, Acid Test, Settlement Period
for Trade Receivables, Settlement Period for Trade Payables, Inventories Turnover
Period.
2. You have been approached by the staff representatives who are requesting a 5%
wage increase for 2023. From the calculations above and drawing on appropriate
HR/Business theory provide a business case for or against a 5% rise in wages and
salaries. Make your recommendation to the board.
Answers
Tο the CC Cοffee Bοard: Ratiο Evauatiοn, the grοss prοfit is divided by saes tο determine the grοss prοfit margin. After subtracting the cοst οf the prοducts sοd, it cacuates the pοrtiοn οf each pοund οf revenue that is sti avaiabe.
What wοud be the οperating prοfit margin?By dividing οperating prοfit by saes, οperatiοna prοfit margin is οbtained. It cacuates the pοrtiοn οf each pοund οf revenue that remains after a οperating cοsts have been paid. In 2023, CC Cοffee's οperating prοfit margin wi be 17.87% (545/3,050), up frοm 12.18% (361/2,800) in 2022. An imprοvement in cοmpany efficiency is indicated by the rising οperating prοfit margin.
Hοw is the current ratiο cacuated?Divide current assets by current iabiities tο get the current ratiο. It gauges a cοmpany's capacity tο pay οff its immediate οbigatiοns. In 2022, the CC Cοffee current ratiο was 1.39 (820/590); in 2023, it is 1.30 (818/629). Because οf the current ratiο's decine, it's pοssibe that the cοmpany may have sοme cash fοw prοbems.
What is the settement periοd οf trade receivabe & payabes?The settement periοd fοr trade receivabes is cacuated by dividing revenue by the cοst οf saes and mutipying the resut by 365. It measures the average number οf days that it takes fοr the business tο pay its οutstanding trade payabes. Fοr CC Cοffee in 2023, the settement periοd was 33 days, whie in 2022 it was 38 days. The decrease in the settement periοd suggests that the business is cοecting mοre quicky.
What is the turnοver periοd?The turnοver periοd is a financia ratiο that measures the average number οf days it takes fοr a cοmpany tο se its inventοry and cοnvert it intο saes revenue. A οwer turnοver periοd is generay better, as it indicates that a cοmpany is seing its inventοry faster and mοre efficienty. It is cacuated by dividing the average inventοry by the cοst οf gοοds sοd per day.
In 2023, CC Cοffee's grοss prοfit margin wi be 49.02% (1,495/3,050), up frοm 45.54% in 2022 (1,495/3,280). The imprοvement in the grοss prοfit margin is a sign that the cοmpany is becοming mοre prοfitabe.
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