1/00 7,700 SHARES (ADJUSTED FOR 10% STOCK DIVIDEND) × 7 MONTHS = 53,...

6/ - UNDERSTANDING INCOME STATEMENTS 1 6/ - UNDERSTANDING INCOME STATEMENTS 1 6/ - UNDERSTANDING INCOME STATEMENTS 1 6/ - UNDERSTANDING INCOME STATEMENTS 1
UNDERSTANDING INCOME STATEMENTS 1
6/1/00 7,700 shares (adjusted for 10% stock dividend) × 7 months = 53,900Total share month = 317,900Average shares = 317,900 / 12 = 26,492Basic EPS = ($150,000 − $80,000) / 26,492 = 2.64

Question #77 of 90

Question ID: 414069

JME Construction always uses the percentage of completion method of recognizing revenue. During 2004 JME signs a contractin the amount of $10 million with the following data available:

Costs incurred to date $2,200,000

Billings to date $2,000,000

Cash collected $1,750,000

Total cost of project $8,800,000

How much gross profit should JME recognize for 2004?ض A)$300,000.غ B)-$200,000.غ C)-$450,000.Explanationstage of completion = 25%(2.2 / 8.8)revenue to be recognized = 0.25 × 10 million = 2.5 milliongross profit = 2.5 million − 2.2 million = 300,000

Question #78 of 90

Question ID: 414071

The calculation of the income recognized in the third year of a five-year construction contract accounted for using the percentage-of-completion method includes the ratio of:غ A)costs incurred in year 3 to total estimated costs.costs incurred in year 3 to total billings.ض C)total costs incurred to total estimated cost.The percentage of completion method recognizes revenues in proportion to the proportion of expenses incurred. Using only the currentyear's costs produces an incorrect result if the estimated total cost has changed. Revenue recognized in any given year is costs to datedivided by total estimated costs, times total estimated revenue for the project, minus revenue that has already been recognized.

Question #79 of 90

Question ID: 414104

Which of the following statements regarding the income statement is least accurate?The results of discontinued operations are reported below income from continuing operations onthe income statement net of taxes.Extraordinary items are both unusual in nature and infrequent in occurrence. Extraordinary items aredisclosed net of taxes after income from continuing operations in the income statements.Items that are unusual in nature or infrequent in occurrence appear below income from continuingoperations on a pretax basis.The key word here is "or." Unusual or infrequent items are unusual orinfrequent, but NOT both. These items are reported (as aseparate line item) as a component of net income from continuing operations.Examples of unusual or infrequent items include:Gains or losses from the disposal of a business segment (employee separation costs, plant shutdown costs, etc.)Gains or losses from the sale of assets or investments in subsidiariesProvisions for environmental remediationImpairments, write-offs, write-downs, and restructuring costsIntegration expenses associated with businesses that have been recently acquired.

Question #80 of 90

Question ID: 414085

In accounting for long-term construction contracts, the percentage-of-completion method is preferable to the completed contract methodwhen:estimates of the costs to complete and the extent of progress toward completion are reasonablydependable.the contracts are of a relatively short duration (less than one year).lack of dependable cost estimates cause forecasts to be doubtful.when estimates of the costs to complete and the extent of progress toward completion are reasonably dependable.

Question #81 of 90

Question ID: 414204

Which of the following statements is CORRECT regarding the reporting of earnings per share (EPS)?Diluted EPS must be less than or equal to basic EPS.Basic EPS can be less than diluted EPS.The EPS when antidilutive securities are converted into shares of common stock is less than basicEPS.Antidilutive securities are securities that would increase EPS if exercised or converted to common stock.

Question #82 of 90

Question ID: 414146

Juniper Corp's stock transactions during the year 20X4 were as follows:January 1 540,000 shares issued and outstandingMarch 1 50 percent stock dividendJuly 1 180,000 treasury shares reacquiredOctober 1 60,000 treasury shares reissuedWhen computing for earnings per share (EPS) computation purposes, what was Juniper's weighted average number of shares outstandingduring 20X4?