X Your answer is incorrect. Matthew Morrison purchased 10,000 convertible preferred shares for $30,000. One preferred share is convertible into 5 common hares. Immediately before conversion, the following information was available. Share Capital 2% noncumulative preferred shares, 100,000 issued Common shares, 500,000 issued Total share capital $698,000 1,000,000 $1,698,000 Current Fair Value Preferred shares Common shares $6.50 $2.14 What would be the balance in the Common Shares account after the conversion? $1,069,800 $1,065,000 $1,030,000 $1,107,000 X Your answer is incorrect. Silver River Paddleboards Co. had $1,500,000 in sales for the year, which provided an after tax profit of $360,000. Their tax rate was 40%. If their gross profit margin was 60% and interest expense was $30,000, what was the total of their operating expenses for the year? $270,000 $600,000 $360,000 cannot be determined with the information provided The following amounts were taken from the accounting records of Red Alert Security on December 31. $1,000,000 $5 preferred convertible shares, (January 1) $5 preferred convertible shares, (December 31) Common shares, (January 1) Common shares,( December 31) Dividends declared Profit for the year Retained earnings, January 1 $1,200,000 1,560,000 1,640,000 150,000 201,000 843,000 What was their return on equity for the year? 7.38% 5.71% 7.44% 5.63%