The Following Information Was Obtained from Cyber Corporation's Annual Report $\text { Common stock: shares outstanding }$

question 31

Essay

The following information was obtained from Cyber Corporation's annual report. $\text { Common stock: shares outstanding }$
$\begin{array}{ll}\text { Balance on January } 1 & 500,000 \\\text { April } 1 \text { - issued in conversion of preferred stock } & 200,000 \\\text { July } 1 \text { - sold for cash } & \underline{ 100,000} \\ \text { Balance on December 31 } & \underline{800,000} \\\end{array}$

$\text { Preferred stock: shares outstanding }$
$\begin{array}{l}\$ 10 \text { par } 8 \% \text {, each convertible into two common shares }\\\begin{array}{lr}\text { Shares outstanding, January } 1 & 175,000 \\\text { Converted on April } 1 \text { (into 200,000 common) } & \underline{100,000} \\ \text { Shares outstanding at year-end } & \underline{ 75,000} \\\end{array}\end{array}$

Options
100,000 options each to purchase one common share at $\$ 80$ per share. None have been exercised.

$\text { Additional information: }$
$\begin{array}{lll}\text { Market prices of common stock for Year } & \begin{array}{l}\text { Average for Year } \\\$ 84\end{array} & \begin{array}{l}\text { End of Year } \\\$ 86\end{array} \\\text { Preferred dividends paid in year } & \$ 80,000 & \\\text { Net income } & \$ 1,200,000 &\end{array}$

a. Compute weighted-average number of common shares outstanding for the year.
b. Compute basic EPS.
c. Compute diluted EPS.

Understanding forecasting and its importance in making business decisions.

Ability to use different forecasting models and understand their applications.

Competence in calculating forecast accuracy using measures such as Mean Absolute Deviation (MAD), Mean Square Error (MSE), Mean Absolute Percentage Error (MAPE), and Root Mean Square Error (RMSE).

Understanding of weighted average model and its application in forecasting.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Indirect Method

A cash flow statement reporting approach that starts with net income then adjusts for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Operating Activities

Business actions directly related to the production and delivery of goods and services.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, as reported in a company's statement of cash flows.