Comparative Earnings per Share

Lucas Company reports net income of $5,125 for the year ended December 31, 2016, its first year of operations. On January 4, 2016, Lucas issued 9,000 shares of common stock. On August 2, 2016, it issued an additional 3,000 shares of stock, resulting in 12,000 shares outstanding at year-end.

During 2017, Lucas earned net income of $16,400. It issued 2,000 additional shares of stock on March 3, 2017, and declared and issued a 2-for-1 stock split on November 3, 2017, resulting in 28,000 shares outstanding at year-end.

During 2018, Lucas earned net income of $23,520. The only common stock transaction during 2018 was a 20% stock dividend issued on July 2, 2018.

If required, round your final answers to two decimal places.

Required:

1. Compute the basic earnings per share that would be disclosed in the 2016 annual report.
   $ _____ per share
2. Compute the 2016 and 2017 comparative basic earnings per share that would be disclosed in the 2017 annual report.
   2017:   $ _____ per share
   2016:   $ _____ per share
3. Compute the 2016, 2017, and 2018 comparative basic earnings per share that would be disclosed in the 2018 annual report.
   2018:   $ _____ per share
   2017:   $ _____ per share
   2016:   $ _____ per share

On March 1, 2019, Ford Co. issued $1,000,000, 12% bonds at a price to yield 10%. The bonds pay interest semi-annually on September 1 and March 1. Bond issue costs of $30,000 were incurred and expensed by Ford Co. The bonds mature on March 1, 2025. The company has a September 30 year-end date.

Show the income statement and balance sheet presentation for the related bond accounts at September 30, 2019 for Ford Co.

Issue price of the bonds
n = 12 6 years x 2 i/y= 5 PMT = - 1,000,000 x 12% x 6/12 60,000 - FV = 1,000,000 - PV= $1,088,633

May I have the full step by step calculation for the Amortization schedule?

Bouwens Corporation manufactures a solvent used in airplane maintenance shops. Bouwens sells the solvent to both U.S. military services and commercial airlines. The solvent is produced in a single plant in one of two buildings. Although the solvent sold to the military is chemically identical to that sold to the airlines, the company produces solvent for the two customer types in different buildings at the plant. The solvent sold to the military is manufactured in building 155 (B-155) and is labeled M-Solv. The solvent sold to the commercial airlines is manufactured in building 159 (B-159) and is labeled C-Solv.

B-155 is much newer and is considered a model work environment with climate control and other amenities. Workers at Bouwens, who all have roughly equal skills, bid on their job locations (the buildings they will work in) and are assigned based on bids and seniority. As workers gain seniority, they also receive higher pay.

The solvent sold to the two customers is essentially identical, but the military requires Bouwens to use a base chemical with a brand name, MX. The solvent for the commercial airlines is called CX. MX is required for military applications because it is sold by vendors on a preferred vendor list.

The company sells solvent for the market price to the airlines. Solvent sold to the military is sold based on cost plus a fixed fee. That is, the government pays Bouwens for the recorded cost of the solvent plus a fixed amount of profit. The cost can be computed according to "commonly used product cost methods, including job costing or process costing methods using either FIFO or weighted-average methods". Competition for the government business is very strong and Bouwens is always looking for ways to reduce the cost and the price it quotes the government.

Currently, Bouwens uses a job costing system in which each month’s production for each customer type is considered a "job". Thus, every month, Bouwens starts and completes one job in B-155 and one job in B-159. (There is never any beginning or ending work in process at Bouwens.) Recently, a dispute arose between Jack, the product manager for the military solvent, and Jill, the product manager for the commercial solvent, over the proper costing system.

1. Jack:

It is ridiculous to use job costing for this. We are producing solvent. Everyone knows that the chemicals are the same. The fact the B-155 has high-cost labor is because all the senior employees want to work there. We could produce the same product with the employees in B-159. We should be using process costing and consider all the production, in both buildings for each month, as the batch.

2. Jill:

Jack, the fact is that the military requires us to use a special chemical and their contracts require we keep track of the costs for their business. If we don’t separate the costing, we won’t know how profitable either business is.

The following is production and cost information for a typical month, July:

Required:

a. Compute the unit costs of M-Solv and C-Solv for July using the current system (job costing) at Bouwens. (Round "Unit cost" to 2 decimal places.)

b. Compute the cost of M-Solv and C-Solv for July if Bouwens were to treat all production as the same (combining B-155 and B-159 production). (Round "Unit cost" to 2 decimal places.)

c. Recommend a costing method that best reflects the cost of producing M-Solv and C-Solv.

d. For your recommended costing system, compute the cost of both M-Solv and C-Solv for July. (Round "Unit cost" to 2 decimal places.)

Compute the unit costs for materials and conversion costs separately.

Then compute conversion costs for the factory: (Round "Unit cost" to 2 decimal places.)

Now, compute the unit product cost: (Round your answers to 2 decimal places.)

Tioga Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the following information.

The total budgeted material-handling cost is $71,720.  

Required:

1. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one lens would be what amount?
2. Under a costing system that allocates overhead on the basis of direct-labor hours, the material-handling costs allocated to one mirror would be what amount?
3. Under activity-based costing (ABC), the material-handling costs allocated to one lens would be what amount? The cost driver for the material-handling activity is the number of material moves.
4. Under activity-based costing (ABC), the material-handling costs allocated to one mirror would be what amount? The cost driver for the material-handling activity is the number of material moves.

(For all requirements, Do not round your intermediate calculations.)

Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Required:

Prepare schedules to accomplish each of the following process-costing steps (for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis of total costs.

Required information

[The following information applies to the questions displayed below.]

The controller for Tender Bird Poultry, Inc. estimates that the company’s fixed overhead is $100,000 per year. She also has determined that the variable overhead is approximately $0.15 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold.

Required:

1. Calculate the predetermined overhead rate under each of the following output predictions: (Round your answers to 2 decimal places.)

2. Does the predetermined overhead rate change in proportion to the change in predicted production?

• Yes

• No

JBeats produce and sell a product that has variable costs of $33 and a selling price of $68 . Its current sales total $204,000 per month. Fixed manufacturing costs total $25,000 per month and fixed selling and administrative costs total $17,000 per month. The company is considering a proposal that will increase the selling price by 5%, increase the fixed manufacturing costs by 5%, and increase the fixed selling and administrative costs by $3,500. A. Compute JBeats’s current break-even point in units. B. Compute JBeats’s margin of safety in dollars. C. Compute JBeats’ss net income. D. Compute JBeats’s breakeven point in units assuming they accept the proposal. E. Compute JBeats’s net income assuming they accept the proposal and sales total 3,300. Label and place your final answer for A-E at the top of the answer box. Then after the answer to E, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.

What are the elements of a contract? How does it differ from a gift? Can an advertisement ever be a contract? When?

Suzy’s Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behavior patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation. What are her estimated costs at 4628 snow cones? When calculating the variable cost per unit, round your answer to two decimal places before completing your calculations. Do not use dollar signs, commas or decimals in your answer. Input your answer to the nearest whole number.

Clayton Industries has the following account balances:

The company wishes to raise $41,000 in cash and is considering two financing options: Clayton can sell $41,000 of bonds payable, or it can issue additional common stock for $41,000. To help in the decision process, Clayton’s management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio.

Compute the current ratio for Clayton’s management currently, if bonds are issued, and if stock is issued. (Round your answers to 2 decimal places.)
  Compute the debt-to-assets ratio for Clayton’s management. (Round your answers to 1 decimal place.)

Assume that after the funds are invested, EBIT amounts to $17,200. Also assume the company pays $3,400 in dividends or $3,400 in interest depending on which source of financing is used. Based on a 40 percent tax rate, determine the amount of the increase in retained earnings that would result under each financing option.
  

Pineapple Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Pineapple:

Direct machine hours were estimated as follows:

In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:

Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,770,000 based on a sales volume of 290,000 video disks. Disk City has been selling the disks for $23 each. The variable costs consist of the $10 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $420,000.

Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.)

Required:

1. Calculate Disk City’s break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.)
2. What will be the company’s net income for the current year if there is a 10 percent increase in projected unit sales volume?
3. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $23? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
4. In order to cover a 30 percent increase in the disk’s purchase price for the coming year and still maintain the current contribution-margin ratio, what selling price per disk must Disk City establish for the coming year? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

7) The following information is from Carter Corp.’s year-end financial statements.:

a) Calculate Carter’s current ratio, quick (acid test) ratio, and days’ sales ratio for the year. (Last year Carter’s accounts receivables were $225.)

b) Last year, Carter’s current ratio was 2, Carter’s quick ratio was 1.4, and Carter’s days’ sales ratio was 31 days. Comment on whether these ratios have improved or worsened this year.

Specifically look at the AICPA website. What is the function of the AICPA? What standards to they enforce? How can you become a member? Are there any ethical implications? Do you think it is a good idea to have an organization like this?

) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) 240,000 Intangible assets (indefinite life) 110,000 Land 90,000 Long-term liabilities (mature 12/31/19) 180,000 Retained earnings, 1/1/17 120,000 Supplies 20,000 Totals $ 720,000 $ 720,000 - During 2017, Jackson reported net income of $96,000 while paying dividends of $12,000. During 2018, Jackson reported net income of $132,000 while paying dividends of $36,000. Assume that Matthews Co. acquired the common stock of Jackson Co. for $588,000 in cash. As of January 1, 2017, Jackson's land had a fair value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000. Any excess of consideration transferred over fair value of assets and liabilities acquired is due to an unamortized patent to be amortized over 10 years. Matthews decided to use the equity method for this investment. Required: (A.) Prepare consolidation worksheet entries for December 31, 2017. (B.) Prepare consolidation worksheet entries for December 31, 2018.