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alexgriva [62]
3 years ago
7

On January 1, 2021, Teal Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions th

at affected the Common Stock account.
February 1 Issued 125,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 98,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 58,000 shares of treasury stock

The weighted-average number of shares outstanding. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares.
Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a).
Business
1 answer:
Jet001 [13]3 years ago
6 0

Answer:

a. The weighted-average number of shares for 2021 is 1,853,225 shares.

b. Earnings per share for 2021 = $1.95 per share

Explanation:

Note: The correct year in the requirement is 2021 not 2018 as erroneously stated parts a and b.

The explanation of the answers is now given as follows:

a. Compute earnings per share for 2021, using the weighted-average number of shares.

Note: See the attached excel file for the computation of the weighted-average number of shares.

From the attached excel file (see the bold red color), the total weighted-average number of shares for 2021 is 1,853,225 shares.

b. Assume that Indigo Corp. earned net income of $3,605,000 during 2021. In addition, it had 104,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2021. Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a).

To calculate earnings per share for 2021, the following formula is used:

Earnings per share for 2021 = Net income of $3,605,000 during 2021 / Weighted-average number of shares for 2021

Therefore, we have:

Earnings per share for 2021 = $3,605,000 / 1,853,225 = $1.95 per share

Download xlsx
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Roberto designers was organized on January 1,2021. The firm was authorized to issue 100,00 shares of $5 par value common stock.
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Answer: the correct answer is D) $250,000

Explanation:

Answers

transactions relating to stockholder's equity

Issued shares 10,000* $7 = $70,000

Issued shares 20,000*$8   = $160,000

net income                            = $100,000

                                                --------------  

Sub Total                                 $330,000  

Debts                              

50,000 dividend                       ($50,000)

3,000 *$10 treasury stock       ($30,000)    

                                                   --------------  

Sub Total                                   ($80,000)

Total   $330,000-$80,000 =  $250,000                                    

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3 years ago
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8 0
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Ana's decision on how to use her time involves opportunity cost.

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8 0
2 years ago
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Answer:

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torisob [31]

Answer:

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