Morrison Corporation Had the Following Common Stock Record During the Current

question 76

Multiple Choice

Morrison Corporation had the following common stock record during the current calendar year: $\begin{array}{|l|l|}\hline \text { Outstanding-January } 1 & 2,000,000 \\\hline \text { Additional shares issued 3/31 } & 100,000 \\\hline \text { Distributed a } 10 \% \text { stock dividend on } 6 / 30 & \\\hline \text { Additional shares issued } 9 / 30 & 100,000 \\\hline\end{array}$
- What is the number of shares to be used in computing basic EPS?

• A) 2,000,000.
• B) 2,205,000.
• C) 2,307,500.
• D) 2,335,000.

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Definitions:

Setup Times

The duration required to prepare or configure equipment or processes before starting a task or production.

Material Handling

Handling, protecting, storing, and controlling materials and merchandise through the phases of manufacturing, storage in warehouses, distribution to consumers, and their ultimate disposal.

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods.

Production Cycle

The series of steps involved in producing a good or service, from initial raw materials to the finished product.