Answer:
informational
Explanation:
Informational influence is defined as a new concept or information that occurs within a group and leads to change in group member attitudes, behaviour, and belief.
In the given scenario parliamentary procedure was used in a business meeting and Jamarcus was not familiar with this.
He looked to other group members to learn how he should behave in this situation.
In this case the group is providing information of proper way of behaving during the meeting.
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine time is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year
Answer:
$444,250
Explanation:
Calculation to determine the maximum contribution margin Garrison can achieve during a year
First step is to calculate the Contribution margin per hour
Oxy sonic
Sales $75 $44
Less: variable cost $40 $21
=Contribution margin per unit 35 23
÷Machine hour per unit 4 2.5
=Contribution margin per hour $8.75 $9.2
Ranking 2 1
Second step is to calculate the Hour required for sonic
Hour required for sonic = 6,000*2.5
Hour required for sonic= 15,000 hours
Third step is to calculate the Hour available for oxy
Hour available for oxy = 50,000-15,000
Hour available for oxy = 35,000 hours
Fourth step is to calculate the Production of Oxy
Production of Oxy = 35,000/4
Production of Oxy= 8,750 units
Now let calculate the Maximum contribution margin
Maximum contribution margin = 8,750*35+ 6000*23
Maximum contribution margin =306,250+,138,000
Maximum contribution margin = $444,250
Therefore the maximum contribution margin Garrison can achieve during a year is $444,250
On January 1, Alan King decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8% annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required:
Answer:
FV= $79,996.75
Explanation:
Giving the following information:
Initial investment (PV)= $58,800
Interest rate (i)= 8% compounded annually
Number of periods (n)= 4 years
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 58,800*(1.08^4)
FV= $79,996.75
Suppose a firm produces with a technology that exhibits constant returns to scale at all levels of production. The firm's inputs are workers and laptops. The firm sells its output in a perfectly competitive market. It also hires its inputs (hires workers and rents laptops) in perfectly competitive markets. Assume that in the long run the firm produces y units of output using x1 workers and x2 laptops. If the firm doubles the amount of workers and laptops (using 2x1 and 2x2), we would expect the firm's long-run profits to
Answer:
Not change
Explanation:
In the long run we expect firms to earn zero profits. With competitive markets for both inputs and output, and with constant returns to scale, a doubling of all inputs would lead to twice as much output, twice as much revenue, and twice as much cost.
Super Saver Groceries purchased store equipment for $43,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $4,000. During the 10-year period, the company expects to use the equipment for a total of 13,000 hours. Super Saver used the equipment for 1,200 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.)
Answer:
$3900
$8600
$3600
Explanation:
This is the remaining part of the question :
Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods
1. Straight-line.
2.Double Declining Method
3.Activity Based
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(43,000 - 4000) / 10 = $3900
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/10 = 0.2
Depreciation expense = 0.2 x $43,000 = $8600
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
(1200 / 13,000) x (43,000 - 4000) = $3600
Questions answer them
Setting and achieving goals is essential to success.
a. True
b. False
Answer: True
Explanation:
The statement that "Setting and achieving goals is essential to success" is true.
When we set goals, it gives us a motivation for the short term and also a long term vision. Setting goals doesn't allow us to deviate from whatever we want to achieve. Our time and resources are dedicated towards achieving that set goal.
Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,400 models. During the month, the company completed 11,200 models, and transferred them to the Distribution Department. The company ended the month with 2200 models in ending inventory. There were 3000 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is being followed. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 55% complete as to conversion costs.
Beginning inventory​:
Direct materials costs $20,000
Conversion costs $11,100
Manufacturing costs added during the accounting period​:
Direct materials costs $70,700
Conversion costs $240,500
What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October?
a. $19,783
b. $20,337
c. $10,923
d. $14,916
Answer:
d. $14,916
Explanation:
Note that Jane Industries uses FIFO method of process costing.
Step 1 : Equivalent Units in respect of materials
Materials = 3,000 x 0 % + 8,200 x 100% + 2,200 x 100%
= 10,400 units
Step 2 : Cost per Equivalent unit in respect of materials
Cost per Equivalent = $70,700 ÷ 10,400 units
= $6.80
Step 3 : direct materials cost assigned to ending work-in-process
Ending work-in-process (Materials Cost) = 2,200 x $6.80
= $14,960
Suppose that the Federal Reserve decides to decrease the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values.
Federal Reserves Assest Liabilities
Commercial Reserves Assets Liabilities
For the Federal Reserve, what are assets? What are liabilities?
a. Monetary base; Reserves
b. Monetary base; Treasury bills
c. Treasury bills; Reserves
d. Reserves; Treasury bill
e. Treasury bills; Monetary base
Answer:
1. Federal Reserves:
Assets : $300
The Fed purchased these T-bills so they will form part of the Fed's assets as they are now owned by the Fed.
Liabilities: $300
Liabilities of the Fed will increase by $300 because the banks will deposit the money they got from the purchase in the Fed.
Commercial Banks:
Treasury Bills: -$300
The Treasury bills will reduce by $300 to reflect that the Fed purchased $300 worth of T-bills from the banks.
Reserves: $300
Reserves will increase because the banks would have made money from selling the T-bills to the Fed.
2. e. Treasury bills; Monetary base
Treasury bills are assets to the Fed in this case because as explained, they own these T-bills now after purchasing them.
The monetary base however, is a liability because it represents commercial bank reserves held in the Fed. They owe the banks this money thereby making it a liability.
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,900. During the month, it was assigned the following costs: direct materials, $76,900; direct labor, $24,900; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $113,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is: Group of answer choices $83,461. $196,961. $68,030. $16,630. $112,700.
Answer:
Ending Work in Process $16,630
Explanation:
The computation of the ending balance of the work in process inventory is shown below:
Beginning Work in process $10,900
Add: Manufacturing Costs
Direct Materials $76,900
Direct Labor $24,900
Factory Overhead $17,430 (70% of $24,900)
Less: Cost of goods manufactured ($113,500)
Ending Work in Process $16,630
John received a promotion at work and felt new clothes would be necessary in the new position. John went to a local store and charged three ties on his charge account at a cost of $60 each. Bill, a friend of John's, saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price. The friends compared purchases that night and found that they had purchased identical ties. John became enraged and said that he would not pay the charge-account bill because the ties were clearly not worth $60 each. Bill indicated that he would testify on John's behalf if litigation ensued. What would be the probable outcome of the lawsuit
Answer:
John will lose the lawsuit
Explanation:
Businesses have a right to set the price of their products, and when the customers considers the price and agrees with it the deal is sealed.
In the given scenario John made the purchase at $60 per tie and he was satisfied with the sale at point of purchase.
He only became enraged when Bill told him he bought his identical ties at $10.
John will lose a lawsuit of he fails to pay the charge-account bill because he willingly agreed to the $60 per tie price.
A large brand runs several companies, including a chain of hotels, an automobile business, and a software development firm. Which data warehouse would help the organization view consolidated results of all the businesses?
A.
distributed
B.
LAN based
C.
virtual
D.
multistage
E.
stationary
Answer:
A.
distributed
Explanation:
In the case of the large brand running several companies, the best data warehouse suitable for them would be distributed type. This is because, it would allow them to house their data separately in the different arms of the business like hotels, automobiles business and software development businesses before the information is linked together and distributed evenly.
The distributed data warehouse allows them to share information among the various arms of the businesses due to the linkage between them.
A firm' s sales procedure involves preparing sales invoices based on shipping documents; posting the sales amounts to accounts receivable records; and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result in:
Answer: understatement of revenues and receivables and over statement of inventory
Explanation:
Control weakness simply refers to the failure by a company to implement the internal controls. Based on the information given, the exposure from this risk can result in understatement of revenues and receivables and over statement of inventory.
There'll be understatement of revenue and receivables since sales is not recorded while the inventory will be overstated.
The amount of money that is earned on a deposit is
Explanation:
principal ...............
Answer:
Interest
Explanation:
interest is the amount that is earned on a deposit
Approach Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 14,800 Actual fixed overhead incurred: $791,000 Standard fixed overhead rate: $13 per hour Budgeted fixed overhead: $780,000 Planned level of machine-hour activity: 60,000 If Approach estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be: Multiple Choice $10,400 negative. $10,400 positive. $11,000 negative. $11,000 positive. None of the answers is correct.
Answer:
$11,000 unfavorable
Explanation:
Calculation to determine the company's fixed-overhead volume variance would be:
Actual fixed overhead incurred ($791,000)
Less Budgeted fixed overhead ($780,000)
Fixed-overhead volume variance $11,000 unfavorable
Therefore the company's fixed-overhead volume variance would be: $11,000 unfavorable
Castle Corporation conducts business in States 1, 2, and 3. Castle’s $630,000 taxable income consists of $555,000 apportionable income and $75,000 allocable income generated from transactions conducted in State 3. Castle’s sales, property, and payroll are evenly divided among the three states, and the states all employ a three-equal-factors apportionment formula.
Determine how much of Castle’s income is taxable in each of the following states.
a. State 1: $ _________
b. State 2: $ _________
c. State 3: $ _________
Answer and Explanation:
The computation of the taxable income in each states is shown below:
a. For state 1
= Apportionable income ÷ number of states
= $555,000 ÷ 3
= $185,000
b. For state 2
= Apportionable income ÷ number of states
= $555,000 ÷ 3
= $185,000
c. For state 3
= $185,000 + $75,000
= $260,000
Which of the following industries is most likely to outsource jobs to another country because of slight increases in labor costs?
a. Milk dairy.
b. High-tech research facility.
c. Textile plant.
d. Automobile assembly plant.
Which of the following industries is most likely to outsource jobs to another country because of slight increases in labor costs?
a. Milk dairy.
b. High-tech research facility.
c. Textile plant.
d. Automobile assembly plant.
Answer: c. Textile plant.
Hope this helps
Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n) a. implied warranty. b. express warranty. c. statement of guarantee. d. set of instructions for use. e. labe
Answer:
b. express warranty.
Explanation:
A warranty can be defined as a written promise or guarantee made by a manufacturer, lessor or seller about the identity or quality of goods and services or a property to a purchaser, promising him or her to repair or replace it if necessary within a specified time frame.
An express warranty is typically considered to be an affirmative promise about the quality or characteristics of an item that is being sold to a buyer and as such it is binding and enforceable by law.
Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is an express warranty.
It recognized by the Uniform Commercial Code ("UCC") as explicit, stated promises by a manufacturer.
Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2023 Subscription revenue recognized (earned) $ 350 $ 360 $ 320 Subscription payments received in cash 390 340 360 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation
Answer: Unearned subscription revenue.
Explanation:
Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.
In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.
The account giving this temporary difference is therefore the Unearned Subscription Revenue account.
Assume you gave up a $60,000 per year job at an accounting firm to start your own tax preparation business. To simplify, assume your tax personal obligations are the same whether you run your own firm or work for another firm. If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
Answer:
Accounting profit= $70,000
Explanation:
Giving the following information:
If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
The accounting profit does not include the opportunity cost of leaving the accounting job. In this case, the accounting profit is:
Accounting profit= revenue - costs
Accounting profit= 75,000 - 5,000
Accounting profit= $70,000
Negotiations often involve three types of issues. For ______________ issues, the parties' preferences are directly opposed. For ______________ issues, the parties have directionally-opposed preferences but value the issues differently. For ______________ issues, the parties have the same preferences.
Answer:
1. Distributive issues
2. Integrative issues
3. Congruent issues
Explanation:
Typically, for every negotiation process, any of the three kinds of issues are involved, this includes the following distributive, congruent, and integrative issues.
Hence, Negotiations often involve three types of issues. For DISTRIBUTIVE issues, the parties' preferences are directly opposed. For INTEGRATIVE issues, the parties have directionally-opposed preferences but value the issues differently. For CONGRUENT issues, the parties have the same preferences.
For DISTRIBUTIVE issues, the parties' preferences are directly opposed.
For INTEGRATIVE issues, the parties have directionally-opposed preferences but value the issues differently.
For CONGRUENT issues, the parties have the same preferences.
What is a Negotiation?A Negotiation refers to method through which parties settle their differences and in reaching an agreement.
Generally, for every negotiation process, any of the three kinds of issues are involved, this includes the following distributive, congruent, and integrative issues.
Read more about Negotiation
brainly.com/question/902450
On average, your firm receives 65 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float? $2,473.80 $3,401.00 $3,890.25 $5,101.50 $6,802.00
Answer:
$3,890.25
Explanation:
Calculation to determine the average amount of the collection float
Using this formula
Collection float =Average Checks received ×Average checks worth×Bank checks clearing numbers of days
Let plug in the formula
Collection float =65 x $39.90 x 1.5 days
Collection float = $3,890.25
Therefore the average amount of the collection float will be $3,890.25
Carol Beal is the export manager at Gudrun Sjoden USA, a licensed distributor for a Swedish designer. Carol has North America and all of Asia in her territory. She has just formed a joint venture to run retail branches in Tokyo, Shanghai, and Seoul. Her plan is to ship directly from the Gudrun Sjoden warehouse in Stockholm. Her Asian partner has requested she ship to her DDP, but Carol would prefer to ship Ex Works. Carol knows that there are critical differences between the two terms of sale and is reviewing what decision to make. She wants to keep her U.S. expenses as low as possible, and she would be funding the shipping out of the United States. She also wants to continue to build a good, solid, trusting relationship with her joint venture partner.
Which statement is true Carol ships goods Ex Works?
a. The buyer would cover shipping and insurance costs assume the risk the door.
b. The seller would cover all insurance costs while the buyer would cover the cost of shipping.
c. The goods be shipped from Stockholm at the seller's expense.
d. The seller would cover all shipping and insurance costs and assume the risk at the factory door.
e. The buyer would cover all insurance costs while the seller would cover the cost of shipping
Answer:
a. The buyer would cover all shipping and insurance costs and assume the risk at the factory door.
Explanation:
According to the given situation the exworks means that the seller fulfill his duty for delivering the goods when the goods are available at his place i.e. works, factory or warehouse to the buyer. Also the buyer would responisble to bear all the cost and the risk involved while taking the goods from the seller place to the final destination
Hence, the option a is correct
Rainey Company's true cash balance at October 31 is $4,700. The following information is available for the bank reconciliation: Outstanding checks, $740 Deposits in transit, $540 Bank service charges, $110 The bank had collected an account receivable for Rainey Company, $1,200 The bank statement included an NSF check written by one of Ramsey's customers for $720. What was the unadjusted book balance at October 31
Answer: $4330
Explanation:
The unadjusted book balance at October 31 is calculated below:
True cash balance = $4700
Add: Bank service charge = $110
Add: NSF Check = $720
Less: Account receivable = $1200
Unadjusted book balance = $4330
Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $99,600. They have excess depreciation on real estate of $59,760, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $19,920, and they made charitable contributions of $9,960. They have no other itemized deductions. If Otto and Monica's taxable income for the current year is $69,720, determine the amount of their AMTI.
Answer: $129480
Explanation:
Based on the information given, the amount of their AMTI will be calculated as:
AGI = $99600
Add: Excess Depreciation on Real Estate = $59760
Less: Mortgage Interest Expenses = $19920
Less : Charitable Contribution = $9960
AMTI = $129480
he following information is for James Industries' first year of operations. Amounts are in millions of dollars.
Year Future Taxable Amounts Future Amounts Total
2020 2021 2022 2023 2024
Accounting income $90
Temporary difference:
Advance rent payment (24 ) $6.00 $6.00 $6.00 $6.00 $24.00
Taxable income $66
In 2021 the company's pretax accounting income was $76.0. The enacted tax rate for 2020 and 2021 is 25%, and it is 30% for years after 2021.
Required:
Prepare a journal entry to record the income tax expense for the year 2021.
Answer:
Date Account Title Debit Credit
December 2021 Income tax expense $19,000,000
Deferred tax liability $1,500,000
Income tax payable $20,500,000
Explanation:
Amounts are in millions of dollars so convert them.
Income tax expense for 2021 is:
= Accounting income * tax rate
= 76,000,000 * 25%
= $19,000,000
Deferred tax liability for 2021 is:
= Advance rent payment for 2021 * 25%
= 6,000,000 * 25%
= $1,500,000
Organizations face myriad barriers and obstacles to effectively increasing and embracing diversity in their workplaces. Some of these barriers stem from people in the organization who are resistant to changing the organization to make it more diverse. This activity is important because resistance to this type of change is an attitude that managers will come up against frequently, and managers should be able to recognize when this occurs so that they can manage the organization and its employees through this challenging but very important type of change.
The goal of this exercise is to challenge your knowledge of the barriers to diversity.
Stereotypes and Prejudices
Fear of Discrimination Against Majority Group Members
Resistance to Diversity Program Priorities
A Negative Diversity Climate
Lack of Support for Family Demands
A Hostile Work Environment for Diverse Employees
First, hover over the terms to read examples of barriers to diversity in action. Then, click and drag each term to indicate the specific barrier to diversity its example best depicts.
Answer:
Stereotypes
- Resistant to diversity program priorities
- Lack of support for family demands
Prejudices
- Fear of discrimination against majority group members
- A negative diversity climate
- A hostile work environment for diverse employees
Explanation:
Examples for stereotypes and prejudices are given below
Stereotypes
- Resistant to diversity program priorities
- Lack of support for family demands
Prejudices
- Fear of discrimination against majority group members
- A negative diversity climate
- A hostile work environment for diverse employees
You are planning to save for retirement over the next 35 years. To do this, you will invest $710 per month in a stock account and $310 per month in a bond account. The return of the stock account is expected to be 9.1 percent, and the bond account will earn 5.1 percent. When you retire, you will combine your money into an account with an annual return of 6.1 percent. Assume the returns are expressed as APRs.
How much can you withdraw each month from your account assuming a 30-year withdrawal period?
Answer:
monthly payment = $16,162.87
Explanation:
future value of stock account = $710 x= [(1 + 0.00758333)⁴²⁰- 1 ] / 0.00758333 = $2,142,045
future value of bond account = $310 x= [(1 + 0.00425)⁴²⁰- 1 ] / 0.00425 = $360,116
future value = $2,502,161
PVIFA = [1 - 1/(1 + 0.0050833)³⁶⁰ ] / 0.0050833 = 165.019
monthly payment = $2,502,161 / 165.019 = $16,162.87
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, and 400 respectively. Budgeted production in units for January, February, and March were 315, 318, and 362 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $16 per hour. The company’s variable overhead is $5.00 per unit produced and its fixed overhead is $5,600 per month..
Required:
a. Determine Galactic's direct labor budget for the first quarter.
b. Determine Galactic's manufacturing overhead budget for the first quarter
Answer:
Direct labor costs= $47,760
total manufacturing overhead= $10,575
Explanation:
Giving the following information:
Production= 315 + 318 + 362= 995 units
Each unit requires 3 direct labor hours.
Hourly rate= $16
Variable overhead per unit= $5
Fixed overhead= $5,600
First, we need to calculate the direct labor hours:
Direct labor hours= 995*3= 2,985
Now, the direct labor costs:
Direct labor costs= $47,760
Finally, the total manufacturing overhead:
total manufacturing overhead= 5,600 + 5*995
total manufacturing overhead= $10,575
Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
Answer:
$1,170
Explanation:
The amount allocated to ending inventory for June using FIFO inventory method is computed as;
= $885 + [($1,140 ÷ 200) × (200 - 150]
= $88 5 + ($5.7 × 50)
= $885 + $285
= $1,170
Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May 1, an additional 9,000 shares of common stock were issued. On July 1, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock. Soliman Corporation’s 2018 net income is $230,000.
Required
a. Compute earnings per share for 2018. Round your answer to two decimal places.
b. Compute diluted earnings per share for 2018. Round your answer to two decimal places.
Answer:
Soliman Corporation
1. Basic EPS
= $6.18 per share
2. Diluted EPS
= $5.23 per share
Explanation:
a) Data and Calculations:
Convertible Preferred Stock = 5,000 or 10,000 Common Shares
Common Stock:
January 1, 2018 = 25,000
May 1, 2018 Issued 9,000
July 1, 2018 Treasury (6,000)
September 1, 2018 Treasury 6,000
Total outstanding 34,000
Converted preferred stock 10,000
Total outstanding 44,000
2018 Net Income = $230,000
Preferred dividend 20,000 ($4 * 5,000)
Income for Common $210,000
Basic Earnings per share = $210,000/34,000 = $6.18
Diluted Earnings per share = $230,000/44,000 = $5.23