Based on the cost of the flowers and the number of years Joe DiMaggio was expected to live, the present value of the commitment was $2,389.26.
How much is the present value of the commitment?First convert the interest and period to weekly figures:
Period:
= 52 x 30
= 1,560 weeks
Interest:
= 10.4% / 52
= 0.2% weekly
The present value will be that of an annuity because the amount is constant every week:
= Amount x (1 - (1 + rate) ^ -number of periods) / rate
= 5 x (1 - ( 1 + 0.2%) ⁻¹⁵⁶⁰) / 0.2%
= $2,389.26
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Modern mixed economies that include free market principles as well as active
government regulation of the economy are based on the theories of ____ .
a.) AS
b.) JMK✅
c.) MF
d.) Karl Marx
The theory of Adam Smith and Karl Marx leads to creation of a Modern mixed economies that include free market and active government regulation.
What is Adam Smith and Karl Marx theory?Adam Smith created the Capitalism economic system while Karl Marx created the socialism economic system.
Hence, the combination gave birth to Modern mixed economies that include free market principles as well as active government regulation.
Therefore, the Option A & D is correct.
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What is the current yield on a 3 year bond with 10% annual coupons, a par value of 100, and a current price of 107.87?
The Current Yield will be 27.55%
[tex]Current.Yield = \frac{Annual.Coupon.Payment}{Current.Bond.Price}[/tex]
Given in the question:
Annual coupon rate= 10%=0.1
Par value=100
time= 3 years
current value=107.87
To Find: Current Yield
What is current yield?
The current yield represents the bond's annual return based on a bond's current price and coupon payments. A bond's coupons payment divided by its current price is the formula for calculating current yield.
[tex]Current.Yield = \frac{Coupon.Payment}{Current.Bond.Price}*100[/tex]
Annual coupon payment = Par value * Annual coupon rate*time
⇒Coupon payment = 100*0.1*3
⇒Coupon payment=30
⇒ [tex]Current.Yield = \frac{30}{108.87}*100[/tex]
⇒ Current Yield=27.55%
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What is a good personal objective to apply a SWOT Analysis to?
A good personal objective to apply a SWOT Analysis to is to help the organization to be able to identify making a business decision.
What the objective of SWOT analysis?A SWOT analysis can be regarded as the ability to gather the company's strengths as well as weakness along threats.
One of the main objective to SWOT analysis is to be able to identify and be aware of the factors involved in making a business decision.
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How do you calculate sales tax? How do you calculate a discount? Please explain and give examples. Thanks!
Sales tax is calculated using tax rate . Discount is calculated using the selling price and list price of the item .
How do you calculate sales tax?Add the tax rate to the cost of your good or service. If the tax rate is expressed as a percentage, convert it to decimal form by multiplying the result by 100. Then multiply this number using the formula below.
Find the list price and the tax rate.To obtain the tax rate as a decimal, divide the tax percentage by 100.To calculate tax, multiply the list price by the decimal tax rate.For the final price, multiply the list price by the tax rate.Ex. If you spend $400 on a new television and live in a region where sales tax is 7%, you would be required to pay $28 in sales tax. The total cost to you would be $428.
How do you calculate a discount?The price difference between an item's listed price (list price) and its selling price is known as the discount. Discount is therefore calculated as follows: Discount = List price - selling price.
Ex. A product may be discounted by $10 from its list price, which is equivalent to a 10% discount.
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One stores information is listed in the table below. Sales return $700 rent expenses $1,288 sales discount $950 depreciation expense $600 cost of merchandise sold $7,600 gross sales $20,900 advertising expense $1,650 salary expense $2,900 heat expense $900 Using this information calculate the stores net sale gross profit total operating expenses and net income
Sales Return -$700 Cost of merchandise sold- $7600
Rent Expenses- $1288 Gross sales- $20900
Sales Discount- $950 Advertising Expense- $1650
Depreciation Expense- $600 Salary expense- $2900
Heat expense- $900
Net sales occurs only when sales returns, allowances or any discounts is subtracted from company's gross sales.A) Net sales = Gross sales- return- sales discount
Net Sales= $20900- $700- $950 = $19,250
Company's revenue or sales subtract cost of goods sold or direct expenses.B) Gross profit= Net Sales- Cost of merchandise sold
Gross profit= $19,250- $7600 =$11,650
Expenses incure during normal business operations like rent, insurance etc.C) Total operating expenses= Rent+ Depreciation+ Heat+ Advertising+ Salary expense
Total operating expenses= $1288+ $600+ $1650+ $2900+ $900= $7,338
The amount which comes after deducting cost, allowances & taxes.D) Net income= Gross profit- total operating expenses
Net income= $11,650- $7338= $4,312
Hence, net sales is $19250, gross profit is $11650, total operating expenses is $7338, net income is $4312
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Hi,
I lead the Customer Support Team for the magazines category. Customer questions for one vendor have increased since the start of the promotional campaign. The campaign ended two months ago, but we are still getting many questions.
Can you help us understand why? The vendor’s performance metrics are below.
Thank you,
Carlos Henderson
Customer questions for one vendor have increased with the promotional campaign because it doesn't meet the customer satisfaction in terms of :
product satisfactionQualityCommitment to feedbackWhy do companies get so much question after promotional campaign ?Promotional campaign were to sensitize the potential customer about a particular product from a company so as to attract them to make a purchase.
However, this campaign should be able to tell more about the product up to some extent that they will get convinced about the product, failure of this will make the potential customer to inquire more out of doubt about the product and this will show in the Vendor performance metrics.
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A 15-year annuity pays $2,220 per month, and payments are made at the beginning of each month. If the interest rate is 10 percent compounded monthly for the first six years, and 6 percent compounded monthly thereafter, what is the present value of the annuity?
The present value of the annuity is $304,744.04.
What is an annuity?An annuity is a periodic fixed amount of money that is received periodically.
An annuity is usually a long-term insurance product that provides guaranteed income.
Formula for Present Value of Annuity:PV = P \times \frac{1 - (1 + r)^{-n}}{r}
PV = present value of an ordinary annuity
P = value of each payment
r = interest rate per period
n = number of periods
Data and Calculations:N (# of periods) = 72 (12 x 6)
I/Y (Interest per year) = 10%
PMT (Periodic Payment) = $2,220
FV (Future Value) = $0
Results:
PV for 6 years = $119,832.64
Sum of all periodic payments $159,840.00
Total Interest $-40,007.36
PV for 9 years = $184,911.40
Sum of all periodic payments = $239,760 ($2,220 x 108)
Total Interest $54,848.6
Total PV for 15 years = $304,744.04 ($119,832.64 + $184,911.40)
Thus, the present value of the annuity is $304,744.04.
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Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of long-term bonds versus short-term bonds? Your answer must be supported with examples and academic citations.
Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.
What is the interest rate?The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.
The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.
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The numbers of suitcases loaded onto various airplanes are an example of which type of data?
Answer:Volume
I think
Explanation:
On a per unit basis economic profit can be determined as the difference between?
How I cite in this paragraph
Despite several shortcomings GDP is commonly used as an indicator of social welfare. Most of the limitations are due to the fact that in essence the concept is not supposed to measure well-being. As a result, GDP fails to account for non-market transactions, wealth distribution, the effects of externalities, and the types of goods or services that are being produced within the economy. To compensate for these issues, different approaches to measuring welfare have been developed, including the Human Development Index (HDI), the Gross National Happiness Index (GNH), and the Social Progress Index (SPI).Raphael Zeder | Updated Jun 26, 2020 (Published Jan 28, 2015)
To site this paragraph, write:
Raphael Zeder, (2020). Limitations of GDP as an Indicator of Welfare. Quickonomics Logo. Updated Jun 26, 2020 (Published Jan 28, 2015).
What is the Limitations of GDP?There are a lot of limitations of GDP as used in welfare indicator they are:
GDP does not have any measures of welfare.GDP only have market transactions.Therefore, To site this paragraph, write:
Raphael Zeder, (2020). Limitations of GDP as an Indicator of Welfare. Quickonomics Logo. Updated Jun 26, 2020 (Published Jan 28, 2015).
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Anticipatory and response-based business models are the two ways used by firms to fulfill customer requirements. However, keeping in mind that there are fundamental differences amongst these two models, concentrate on the definitions and build on such differences to be able to fulfill the requirements of this learning engagement.
Anticipatory business model is the business type where everything is pre-defined and Response based business model is the one which have reduced the forecasting by joint planning.
What are types of business models?There are various kinds of business model, which business performs these days, it also depends upon the range of customers the business is dealing with. Some of the hem are-
Bundling model. ... Freemium model. ... Razor blades model. ... Product to service model. ... Crowdsourcing model. ... One-for-one model. ... Franchise model. ... Distribution model.Thus, both the business model concentrate on different things.
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what is the price of a two year bond with a 9% annual coupon and a yield to maturity of 8%
Based on the period of the bond, the coupon rate, and the yield to maturity, the price of the bond is $1,017.83.
How much does the bond sell for?This can be found as:
= Present value of coupon payments + Present value of par value
Coupon is:
= 9% x 1,000 par value
= $90
Note: When par value is not given, assume it is $1,000.
Price is:
= (90 / (1 + 8%)) + (90 / (1 + 8%)²) + (1,000 / (1 + 8%)²)
= 160.4938 + 857.3388
= $1,017.83
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Which of the following actions would be an acceptable response by the Federal Reserve to an economic downturn?
O Decrease the reserve requirement
O Increase the reserve requirement
Raise the discount rate
Sell government securities
Answer:
Raise the discount rate
Explanation:
might be the answer
Which of the following is NOT a factor that is used
to determine your FICO credit score?
O Recently opened lines of credit
O Your debit card use
O Payment history
O The types of credit you use
Debit card use is not a factor that is used to determine a FICO (Fair Isaac Corporation) credit score.
More about FICO (Fair Isaac Corporation) credit score.
Numerous different types of credit information from your credit report are used to construct FICO Scores. Payment history (35 percent), amounts due (30 percent), duration of credit history (15 percent), new credit (10 percent), and credit mix make up the five factors that make up this data (10 percent ).Both positive and negative information from your credit record is taken into account by your FICO scores. The chart's percentages show how significant each category is in influencing how your FICO Scores are computed.To learn more about FICO credit score, refer to
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Imagine that an exchange student from China visits your class. While your teacher discusses how the United States has a limited government, the Chinese student raises his hand and asks why the government has limited power. Which point best highlights why the US government has limited power? A. A limited government means citizens pay fewer taxes. B. A limited government helps people avoid breaking the law. C. A limited government protects individual freedoms. D. A limited government prevents businesses from being too powerful.
The point best highlights about the US government limited power is that limited government protects individual freedoms. Thus the option (C) is correct.
What is Government?Government refers to the group of individual governing the nation. The main role of the government is the protect of its territory from the outsiders. It functions in various sectors such as health, education, defense, infrastructure etc.
As per the above scenario, a Chinese students asks his teacher that why the American government has the limited power the best reason for the limited power is government protects the individual freedom by diving the power into many hands.
With the distribution of the power in the different branches has led to the enjoy the individual freedom. Thus the option (C) is correct.
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. Suppose you are given a privilege to choose between Capitalism and Socialism as an economic system to be followed in Ethiopia. Which do you choose? Support your answer with at least five justifications.
The system that would be chosen between Capitalism and socialism is capitalism.
Why Capitalism is chosen over socialismThe people of the nation have the right to make economic choices based on production.The demand and the supply of goods are rested in the hands of the people instead of the government.It allows for private ownership of properties unlike socialism.It encourages the people to be innovative as well as efficient.It provides for growth and freedom in the economy.Read more on capitalism here:
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ANSWER ALL QUESTIONS QUESTION 1 (a) List and Explain the FIVE elements of financial statements as defined in the IASB'S Framework. (5 marks) (b) Explain TWO fundamental qualities of financial information. (c) Explain SIX subsidiary books of Book-keeping accounting. Total = (15 marks) (4 marks) (6 marks) ANSWER ALL QUESTIONS QUESTION 1 ( a ) List and Explain the FIVE elements of financial statements as defined in the IASB'S Framework . ( 5 marks ) ( b ) Explain TWO fundamental qualities of financial information . ( c ) Explain SIX subsidiary books of Book - keep
ing accounting . Total = ( 15 marks ) ( 4 marks ) ( 6 marks )
a) The FIVE elements of financial statements as defined in the IASB's Framework are Assets, Liabilities, Equity, Revenue, and Expenses.
b) TWO fundamental qualities of financial information are relevance and faithful representation.
c) SIX subsidiary books of Bookkeeping accounting are as follows:
General journalGeneral ledgerSales Journal Purchases JournalCash receipt journalCash disbursement journal.What are the financial statements?Financial statements are formal records that faithfully present relevant information about an entity's financial performance and position over a period.
Some of the common financial statements are:
Income statement (revenues and expenses)Cash-flow statement (cash inflows and outflows)Balance sheet (assets, liabilities, and equity)Statement of change in equityNote to Financial Statements.Thus, financial information must be relevant and faithfully representative of financial performance and position.
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what are some ergonomic considerations for auditors?
Some ergonomic considerations for auditors include safety, comfort, efficiency in performance, and efficiency in productivity to name a few.
Who is an auditor?A professional who is involved in the scrutiny of the financial statements and records of an organization and the one who is responsible for verification of actual transactions with business records, is an auditor.
Hence, the significance of an auditor is aforementioned.
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How should Jamba Juice compete
In order for Jamba Juice to compete effectively, it should consider: The expansion of the chain's culinary offerings throughout all mealtimes—breakfast, brunch, lunch, and dinner—by:
refranchising current outletsstarting international expansionestablishing a retail presence with branded CPGs, andlicensing.What is competition?Competition is the business practice of playing in the same market with another company that offers similar services while contesting for the same market share.
The above recommendation is known as a competitive strategy. See the attached for the full case study of Jamba Juice.
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There are three types of unemployment: frictional, structural, and cyclical. Which one is the worst for workers and what could they do to avoid it? Explain
Answer:
Over time, the economy experiences many ups and downs. That's what we call cyclical unemployment because it goes in cycles. Cyclical unemployment occurs because of these cycles. When the economy enters a recession, many of the jobs lost are considered cyclical unemployment.
For example, during the Great Depression, the
Answer:
Structural Unemployment is the most common type of unemployment. It is also the worst type of unemployment. Since it is caused by forces other than the business cycle, it is more permanent in nature compared to other types of unemployment.
Explanation:
Economists primarily focus on three types of unemployment: cyclical, frictional, and structural.
You gave some clothes for. dry cleaning. Your suit was spoiled you went to the dry cleaner and made the compliant .
Answer:
Apart from the question words or the yes/no tags, a question can begin with auxiliary verbs like will, shall, can, etc.The word 'can' is specifically used to request or get permission for something.The word 'can' is joined by the subject and the main verb in the question.Questions beginning with 'can' are answered with a yes or no answer in short or expanded form'. Question: "Can I pay you later?"*Explanation:
According to this credit report, how many accounts has Lillie had sent to collections?
Answer:From the credit report the number of accounts that Lille has sent collections is 0. This is because she has sent not sent any to an account. What is a credit report? This is a report of how a persons credit activity is. It also tells about the financial standing of a person and how they are faring in terms of finance.
Explanation:
What clause in a sales contract states under what conditions the buyer can
cancel the contract without default and receive a refund of the earnest money?
Answer:
A listing agreement is the document you use to commit to working with a specific real estate agent. Before you sign a listing agreement, ask your agent whether you can be released for any reason, even if that reason is, "I want to list with another broker." If your agent tells you, "No," you might not want to list it with their company.
If you didn't ask your agent about canceling before signing, be aware that exclusive right-to-sell listings contain a safety or protection clause.6
If you ask an agent after the fact to cancel the listing, and they refuse, call their brokerage and request a cancellation. Your listing, believe it or not, is not between you and your agent. It is between you and the brokerage.
If the broker rejects your request for cancellation, then ask the brokerage to assign another agent to you. Most brokers are happy to assign another agent and keep the listing in-house. The brokerage will often pay your fired agent a referral fee.
If there are no workable solutions, call a real estate lawyer for termination assistance, but first, tell the brokerage of your intentions to do so. Sometimes that’s enough to get a release.
Ask your agent to give you a form called "termination of buyer agency." The TBA issued by the California Association of Realtors, for example, will cancel oral or written agency agreements when properly acknowledged and executed.
Discuss whether or not an increase in the wage rate paid to chefs will encourage more
people to become chefs.
Answer:
obviously increase in which rate of chips will encourage more people to become chef
Explanation:
but as perlot of demand is supply of chef increase more than demand of chips there will be not reduction in wages of chef till were will be equilibrium
Answer:
Yes it might make more people want to be chefs but some people do it not for money but for their love of cooking.
Explanation:
14. All are the reasons for market segmentation except: A. buyers are too numerous B. buyers are too varied in their needs and buying practices C. buyers are too widely scattered by demographics D. capability of companies managerially and financially E. none of the above
The correct option is E). None of the above as rest of the options are reasons for market segmentation.
What is market segmentation?Market segmentation refers to process of dividing the broad market into sub groups on the basis of needs, priorities, common interest etc.
The main elements of the market segmentation are demographic, psychographic, behavioral, geographic, and firmographic segmentation.
Market segmentation allows to target the specific audience rather than targeting entire audience.
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The length of a picture is 18.25 inches shorter than twice the width. If the perimeter of the picture is 119.5 inches, find its dimensions.
An expression is defined as a set of numbers, variables, and mathematical operations. The length and the width of the picture are 33.75 inches and 26 inches, respectively.
What is an Expression?In mathematics, an expression is defined as a set of numbers, variables, and mathematical operations formed according to rules dependent on the context.
The length of a picture is 18.25 inches shorter than twice the width. Therefore,
L = 2W - 18.25 inches
If the perimeter of the picture is 119.5 inches, therefore, the perimeter of the picture is,
Perimeter = 2(L+W)
119.5 = 2(2W - 18.25 + W)
119.5 = 2(3W-18.25)
119.5 = 6W - 36.5
156 = 6W
W = 26
Now, the length of the picture will be,
L = 2W - 18.25
L = 2(26) - 18.25
L = 33.75 inches
Hence, the length and the width of the picture are 33.75 inches and 26 inches, respectively.
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How do your listening behaviors change in the following situations: A) At a concert, B) In class, C) At the dinner table with your parents, D) In a doctor’s office? What are the distractions and other barriers to listening you might encounter in each setting? What might you do to overcome the barriers to effective listening in each situation?
A mic malfunctioned at a concert. In class, ambient noise. At the dinner table with your parents, the TV sounds. In a doctor’s office, another patient is shouting at the nurse.
What is listening?
The act of hearing language is referred to as "listening." recognizing speech sounds and turning them into words and phrases.
At a concert, the singer's mic volume is low enough that it creates a barrier in the listening process, but this is overcome by using a speaker. While the teacher is teaching the class, some students are playing in the hallway, which amplifies the sounds. The instructor then keep silence.
Children are preoccupied with watching TV during dinnertime and are not paying attention to their parents. The parents then unplug the TV. While discussing a patient's illness at a doctor's office, another patient is yelling at the nurse. The doctor then closes the door.
As a result, listening barrier create in various situations', but it's overcome.
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the roots of the quadratic function describing the relationship between the number of products produced and overall profit margins are x= 0 and 150. the vertex is (75, 10000).
The whole statement is as follows: When there are 75 things in production, a profit of 10000 dollars is obtained, which is the highest possible.
What is the complete statement?Because we already know that the profit equation is defined between x = 0 and x = 150, which are the two roots of the equation, we also know that the profit is equal to zero when
x = 0 and when x = 150.
If this is the case, we may reasonably expect a positive return on investment within this range.
Therefore, the quadratic equation should have a leading coefficient that is negative. This would indicate that the arms of the graph should move in a downward direction.
If this is the case, then we already know that the maximum will be located at the vertex of the triangle.
In this case, we are aware that the vertex is:
(75, 10000)
In this equation, x stands for the total number of products sold, while y indicates the amount of money made.
Since the maximum is at the vertex, and we know that the vertex is located at (75, 10000), we may draw the conclusion that the maximum profit is $10000, and this occurs when the number of things created is 75. This is because the vertex is located at the intersection of the two lines.
Therefore, the whole statement is as follows:
When there are 75 things in production, a profit of 10000 dollars is obtained, which is the highest possible.
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You have been provided with the following summarized accounts of Golden Times Ltd. For the year ended 31 March 2000:
Balance sheet as at 31 March 2000
Sh. Sh. Sh.
Fixed Assets:
Freehold property (Net Book Value) 480,000
Plant and machinery (Net Book Value) 800,000
Motor Vehicle (Net Book Value) 200,000
Furniture and fittings (Net Book Value)
1,680,000
Current Assets:
Stocks 1,000,000
Debtors 400,000
Investments
Current Liabilities:
Trade creditors 338,400
Bank overdraft 878,400
Corporation tax 176,000
Dividends payable
Financed by:
Authorized share capital – 800,000
Sh. 1 ordinary shares
Issued and fully paid: 400,000 Sh.1 400,000
Ordinary shares
Capital reserve 200,000
Revenue reserve 800,000
Loan capital: 400,000 10% Sh. 1 Debentures
Profit and loss account for the year ended 31 March 2000
Sh.
Sales (credit)
Profit after charging all expenses except interest on 440,000
debentures
Less: Debenture interest 400,000
Profit before tax
Corporation tax 224,000
Less: ordinary dividend proposed
Retained profit transferred to revenue reserve
The following additional information was available:
1. The purchases for the year were Sh. 2,160,000 while the cost of sales was Sh.3,000,000.
2. The market price for Golden Times Ltd. Ordinary shares as at 31 March 2000 was Sh. 5.
3. The company estimates the current value of its freehold property at Sh.1,100,000
Required:
Compute the following ratios for Golden Times Ltd:
(i) Return on capital employed.
(ii) The profit margin
(iii) The turnover of capital
(iv) Current ratio;
(v) Liquid ratio
(vi) Number of days accounts receivable are outstanding;
(vii) Proprietary ratio;
(viii) Stock turnover ratio;
(ix) Dividend yield ratio;
(x) Price earnings ratio
The computation of the following financial ratios for Golden Times Ltd is as follows:
(i) Return on capital employed:= Profit after tax/Total assets - current liabilities x 100
= 12.44% (Sh 224,000/ Sh 1,800,000) x 100
(ii) The profit margin:= Profit after tax/Sales revenue x 100
= 5.6% (Sh 224,000/Sh 4,000,000 x 100)
(iii) The turnover of capital:= Sales Revenue/Equity
= 2.86 x (Sh 4,000,000/Sh 1,400,000
(iv) Current ratio:= Current Assets/Current Liabilities
= 1.09 (Sh 1,520,000/Sh 1,400,000)
(v) Liquid ratio:= Current Assets less Stocks /Current Liabilities
= 0.37 (Sh 1,520,000 - Sh 1,000,000/Sh 1,400,000)
(vi) Number of days accounts receivable are outstanding:= Average Accounts Receivable/Sales Revenue x 365
= (Sh. 400,000/Sh. 4,000,000 x 365
= 36.5 days
(vii) Proprietary ratio:= Shareholders equity/Total assets x 100
= 43.75% (Sh. 1,400,000/Sh. 3,200,000)
(viii) Stock turnover ratio:= Cost of goods sold / Average stock
= 2.11 x (Sh. 3,000,000/Sh. 1,420,000)
(ix) Dividend yield ratio:= Dividend per share/Price per share
= 5.36% (Sh. 0.268/Sh.5 x 100)
(x) Price earnings ratio:= Market price per share/Earnings per share
= 8.93x (Sh. 5/Sh. 0.56)
Data and Calculations:Golden Times Ltd
Balance sheetAs at 31 March 2000
Sh. Sh. Sh.
Fixed Assets:
Freehold property (Net Book Value) 480,000
Plant and machinery (Net Book Value) 800,000
Motor Vehicle (Net Book Value) 200,000
Furniture and fittings (Net Book Value) 200,000
1,680,000
Current Assets:
Stocks 1,000,000
Debtors 400,000
Investments 120,000
1,520,000
Current Liabilities:
Trade creditors 338,400
Bank overdraft 878,400
Corporation tax 176,000
Dividends payable 107,200 1,400,000 120,000
1,800,000
Financed by:
Authorized share capital – 800,000
Sh. 1 ordinary shares
Issued and fully paid: 400,000 Sh.1 400,000
Ordinary shares
Capital reserve 200,000
Revenue reserve 800,000
Loan capital: 400,000 10% Sh. 1 Debentures 400,000
1,800,000
Golden Times Ltd
Profit and loss accountFor the year ended 31 March 2000
Sh.
Sales (credit) 4,000,000
Profit after charging all expenses except interest on 440,000
debentures
Less: Debenture interest (40,000)
Profit before tax 400,000
Corporation tax 176,000
Profit after tax 224,000
Less: Ordinary dividend proposed (107,200)
Retained profit transferred to revenue reserve 116,800
Beginning stock = Sh. 1,840,000 (Sh. 3,000,000 + 1,000,000 - 2,160,000)
Average stock = Sh. 1,420,000 (Sh. 1840,000 + Sh. 1,000,000)/2
Dividend per share = Sh. 0.268 (Sh 107,200/400,000)
Earnings per share = Sh. 0.56 (Sh. 224,000/400,000)
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