Answer:
Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01
Explanation:
In order to calculate Algerian Delivery's basic earnings per share for the year ended December 31, 2021 we would have to make first the following calculations:
Net Income = $298,750
Calculation of Weighted Average of Number of Equity Shares:
Outstanding on Jan 1 = 100,000*12/12 = 100,000
Less: Treasury Stock 3,100*10/12 = (2,583)
Sold Treasury Shares 3,100*3/12 = 775
New Shares Sold 12100*1/12 = 1,008
Therefore, Weighted Average of Equity Shares during the year = 100,000 - 2,583 + 775 + 1,008
=99,200
Therefore, Basic Earnings per Share = Net Income/Weighted Average of Equity Shares outstanding during the year
= $298,750/99,200 = $3.01
Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01
