Karen company's net accounts receivable were P430,000 on December 31, 19x8 and P480,000 on December 31, 19x9. Cash sales during 19x9 were P175,000. The accounts receivable turnover for 19x9 was 5. Karen Company's total sales for 19x9 were a. P3,150,000 b. P2,450,000 c. P2,275,000 d. P2,575,000   True or false When the market price of stock options, warrants, and rights is higher than the current option price, exercise might occur; therefore, there is potential dilution from these securities and they would be included in the computation of diluted earnings per share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Karen company's net accounts receivable were P430,000 on December 31, 19x8 and P480,000 on December 31, 19x9. Cash sales during 19x9 were P175,000. The accounts receivable turnover for 19x9 was 5. Karen Company's total sales for 19x9 were

a. P3,150,000

b. P2,450,000

c. P2,275,000

d. P2,575,000

 

True or false

When the market price of stock options, warrants, and rights is higher than the current option price, exercise might occur; therefore, there is potential dilution from these securities and they would be included in the computation of diluted earnings per share.

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