Explanation:
a. The preparation of the statement of retained earnings for the year ended December 31, 2019 is presented below:
Hayes Enterprises
Statement of retained earnings
For the year ended December 31, 2019
Beginning balance of retained earning $928,000
Add: Net income $377,000
Less: Cash Dividend paid
Preference stock dividend -$47,000
Common stock dividend $210,000
Ending balance of retained earning $1,048,000
The common stock dividend is
= $928,000 + $377,000 - $47,000 - $1,048,000
= $210,000
b. The earning per share is
Earning Per share = (Net income - Preferred Dividends) ÷ (Average Common shares outstanding)
= ($377,000 -$47,000) ÷ (140,000 Shares)
= $2.36 per share
C. Dividend per share = Common Stock dividend ÷ Common Shares outstanding
= $210,000 ÷ 140,000 shares
= $1.50
