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borishaifa [10]
2 years ago
11

Burns Company reported $1,161.405 million in net income in 2021. On January 1, 2021, the company had 409 million shares of commo

n stock outstanding. On March 1, 2021, 29.4 million new shares of common stock were sold for cash. On June 1, 2021, the company's common stock split 2 for 1. On July 1, 2021, 13.4 million shares were reacquired as treasury stock.Required: Compute Burns' basic earnings per share for the year ended December 31, 2021
Business
1 answer:
CaHeK987 [17]2 years ago
4 0

Answer:

Earnings Per Share = $1.35

Explanation:

To calculate the basic earnings per share, we first need to compute the Weighted Average No. of Shares Outstanding:

Jan.1: 409 * (12/12)    = 409 * 2                                    = 818 million

Mar.1: 29.4 * (10/12)   = 24.5 * 2                                   =  49 million

July 1: 13.4 * (6/12)                                                        =   <u>(6.7) million</u>

Weighted Average No. of Shares Outstanding:        =   860.3 million

Note: We multiplied by 2 in Jan.1 and Mar.1 transactions to account for common stock split 2 for 1.

Now calculate the Earnings Per Share:

Earnings Per Share =   <u>                        Net Income                                </u>

                                    Weighted Average No. of Shares Outstanding

Earnings Per Share =       <u>1,161.405</u>

                                            860.3

Earnings Per Share = $1.35

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Answer:

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Explanation:

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Capacity cushion = 100% - average utilization rate

25% = 100% - average utilization rate  

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75% = 84 ÷  Maximum capacity × 100

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2 years ago
Mark wants a new car that costs $30,000. He only has $500 in his savings account and $300 in his checking account. Which financi
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ANSWER: B) Lease the car with a 0 percent down payment.

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If he tries for option A which is buying the car with 10% down payment, then it would not have been possible as 10% of the car price would be $3,000. Mark at this moment will be short of money by $2,200.

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Answer and Explanation:

The preparation of the bank reconciliation statement is presented below:

Balance as per bank $8,732.00

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Adjusted bank balance  $10,746.00

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Add: EFT received from customer $2,023.00

10791.00

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