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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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China is a highly efficient manager. This implies that she:________ a. minimizes the amount of input resources without compromis
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Answer:

a. Minimizes the amount of input resources without compromising quality.

Explanation:

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Effectiveness measures goals completeness selected by managers for the organization. It means doing the right thing as expected of the organization.

For China to be efficient, she must minimize the amount of input resources without compromising quality. An efficient manager must perform a task qualitatively with the available resources, least cost and in the best way possible.

8 0
3 years ago
The predetermined overhead rate for manufacturing overhead for 2020 is $4.00 per direct labor hour. Employees are expected to ea
timofeeve [1]

Answer:

$60,000

Explanation:

The computation of the estimated manufacturing overhead is shown below:

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where,

Direct labor hours = Total Direct labor cost ÷ Cost per hour

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                              = 15,000 direct labor hours

Now the estimated manufacturing overhead equal to

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3 years ago
What key factor kept the copernican theory from being widely accepted at first?
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Access to local partner's knowledge and shared development costs and risks are advantages of which foreign market entry mode
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Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9.25%; rRF =
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Answer:

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Explanation:

According to Capital Asset Pricing Model, the formula to compute expected rate of return is equals to

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where,

rRF = risk free rate of return

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