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Tropical Island Inc

question 79

Essay

Tropical Island Inc.(TIl)was incorporated on January I,2014.At that time it issued 300,000 ordinary shares; 10,000,$10,8% preferred shares "A"; and 100,000,$10,9% preferred shares "B." Net income for the year ended December 31,2014 was $1,600,000.TIl declares and pays a total of $68,000 in dividends.The series A preferred shares are cumulative and the series B preferred shares are non-cumulative.Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders.
Requirement:
Compute basic BPS.


Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production costs.

Operational Costing

The method of calculating the expenses associated with the day-to-day running of a business, including costs of manufacturing and services.

Food Processors

Kitchen appliances used to facilitate repetitive tasks in the preparation of food, such as chopping or mixing.

Large Scale

Operations or activities conducted on a wide-ranging or extensive basis, often implying significant impact or size.

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