Austin Products Reported $340,000 Net Income for the Year with 100,000

question 46

Multiple Choice

Austin Products reported $340,000 net income for the year with 100,000 common shares outstanding all year. Austin issued 26,000 shares of $100, 8% convertible preferred shares on March 1. Each preferred share is convertible into 10 shares of common stock. Determine the numerator for both basic and diluted EPS. (Do not round any intermediate calculations. Round your final answers to the nearest dollar.)

• A) basic EPS $305,333; diluted EPS $166,667
• B) basic EPS $305,333; diluted EPS $132,000
• C) basic EPS $340,000; diluted EPS $340,000
• D) basic EPS $166,667; diluted EPS $340,000

Determine the correct reporting of inventory and cash balances affected by foreign currency translation in the balance sheet.

Assess the effect of foreign exchange rates on costs of goods sold and income statements.

Analyze the results of foreign exchange gains or losses based on various transaction scenarios.

Prepare journal entries for sales transactions and forward contracts in the context of a cash flow hedge.

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Definitions:

Statement of Cash Flows

A report detailing the impact of variations in balance sheet items and revenue on cash and equivalents, segmented by operating, investing, and financing activities.

Sources and Uses of Cash

A financial statement or section that summarizes where a company's cash comes from (sources) and where it is spent (uses), providing insight into its financial health.

Assets and Liabilities

Assets are resources owned by a company that have economic value, while liabilities are the company's legal debts or obligations.

Income and Expenses

Refers to the money received (income) and the costs incurred (expenses) by an individual or business, which determine the net profit or loss.