Interurban Company Began Operations on the First Day of the Year.On

question 97

Multiple Choice

Interurban Company began operations on the first day of the year.On that day they issued 10,000 shares.On March 1 they issued 20,000 shares and on July 1,another 30,000 shares.On December 1,Interurban repurchased 5,000 shares of outstanding shares.Compute basic EPS for the first year of operation if net income was $60,000.

• A)$1.64
• B)$1.45
• C)$1.20
• D)$1.00

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Definitions:

Manufacturing Capacity

The maximum volume of products that can be produced in a given period under normal working conditions.

Overall Equipment Effectiveness

A measure of manufacturing productivity that combines availability, performance, and quality metrics of equipment.

Machinery

The machines, equipment, and devices that perform various tasks in the manufacturing of goods and provision of services.

Efficiency Rate

The ratio of the actual output produced to the expected standard output, utilized in assessing operational efficiency.