In: Accounting
5. Jasper Corp, has the following Stockholders’ Equity account balances and activity for Year 2.
Net income |
$14,750,000 |
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Retained earnings |
$13,250,000 |
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Preferred stock shares outstanding |
1,000 |
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Common stock shares outstanding at January 1, Year 2 |
6,855,000 |
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Additional Common shares issued at July 1, Year 2 |
20,000 |
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3-for-1 stock split at December 31, Year 2 |
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Preferred Dividends |
$15,000 |
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Common Dividends |
$58,000 |
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Year 1 EPS |
$2.06 |
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Earnings per share = __________________ / ___________________* = ________
* Compute Denominator: Weighted average common shares outstanding
Date |
Shares |
Portion of year |
Weighted Average Shares |
January 1, Y2 |
6,855,000 |
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July 1, Y2 |
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Weighted Average December 31 before split |
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Stock split 3-for-1 |
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*Total Weighted Average, 12/31/Y2 |
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Note: Year 1 restated |
$2.06 / 3 =_____ |
Did performance improve in Year 2 as compared to Year 1? _________________Why?