Question
In: Accounting
Assume that the following data relative to Kane Company for 2020 is available: Net Income &nbs
Assume that the following data relative to Kane Company for 2020 is available:
Net Income $2,100,000
|
Transactions in Common Shares |
Change |
Cumulative |
|
Jan. 1, 2020, Beginning number |
700,000 |
|
|
Mar. 1, 2020, Purchase of treasury shares |
(60,000) |
640,000 |
|
June 1, 2020, Stock split 2-1 |
640,000 |
1,280,000 |
|
Nov. 1, 2020, Issuance of shares |
120,000 |
1,400,000 |
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common
(adjusted for split). $1,000,000
Stock Options
Exercisable at the option price of $25 per share. The average
market price in 2020, $30 (market price and option price
adjusted for split). 60,000 shares
Instructions
(a) Compute the basic earnings per share for 2020 (Round to the nearest penny).
(b) Compute the diluted earnings per share for 2020 (Round to the nearest penny).
Solutions
Expert Solution
Basic EPS=Net income-Preference Dividend/Weighted Avg numbers of Shares Outsatnding
Diluted EPS=Net Income-Preference Share+Diluted shares
Eanrings/Avg. numbers of shares+DIluted shares
ekkarill92 answered 2 years agoRelated Solutions
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,790,000...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,790,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2018, Beginning number
680,000
Mar. 1, 2018, Purchase of treasury shares
(66,600)
613,400
June 1, 2018, Stock split 2-1
613,400
1,226,800
Nov. 1, 2018, Issuance of shares
234,000
1,460,800
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common
(adjusted for split).
$1,000,000
Stock Options
Exercisable at the option price of $25...
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,800,000...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,800,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2018, Beginning number
650,000
Mar. 1, 2018, Purchase of treasury shares
(55,200)
594,800
June 1, 2018, Stock split 2-1
594,800
1,189,600
Nov. 1, 2018, Issuance of shares
216,000
1,405,600
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 190,000 shares of common
(adjusted for split).
$950,000
Stock Options
Exercisable at the option price of $25...
Assume that the following data relative to Kane Company for 2015 is available: Net Income $2,800,000...
Assume that the following data relative to Kane Company for 2015
is available: Net Income $2,800,000 Jan. 1, 2015, Beginning number
of Common Shares 700,000 Transactions in Common Shares in 2015 On
April 1, the corporation purchased on the market 60,000 of its own
outstanding shares. On July 1, the corporation declared and issued
a 2-for-1 stock split. On October 1, the corporation issued 240,000
new shares to raise additional capital. The following dilutive
securities were issued prior to 2015....
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,890,000...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,890,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2018, Beginning number
740,000
Mar. 1, 2018, Purchase of treasury shares
(72,000)
668,000
June 1, 2018, Stock split 2-1
668,000
1,336,000
Nov. 1, 2018, Issuance of shares
222,000
1,558,000
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 180,000 shares of common
(adjusted for split).
$900,000
Stock Options
Exercisable at the option price of $25...
Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,890,000...
Assume that the following data relative to Kane Company for 2018
is available:
Net Income
$2,890,000
Transactions in Common Shares
Change
Cumulative
Jan. 1, 2018, Beginning number
720,000
Mar. 1, 2018, Purchase of treasury shares
(67,200)
652,800
June 1, 2018, Stock split 2-1
652,800
1,305,600
Nov. 1, 2018, Issuance of shares
240,000
1,545,600
6% Cumulative Convertible Preferred Stock
Sold at par, convertible into 190,000 shares of common
(adjusted for split).
$950,000
Stock Options
Exercisable at the option price of $25...
Assume that the following data relative to Kane Company for 2018 os available: Net Income 2900000...
Assume that the following data relative to Kane Company for 2018 os
available:
Net Income 2900000
Transaction in common shares change cumulative
Jan. 1 2018 Beginning number. 710000
Mar 1 2018 Purchase of treasury shares (61200) 648800
June 1 2018 stock split 2-1. 648800. 1297600
Nov 1. 2018 Issuance of shares 258000. 1555600
6% cumulative convertible preferred stock
sold at par, convertible into 180000 shares of common
(adjusted for split)
stock options
exercisable at the option price of $25 per...
1- Assume that the following data relative to Rice Company for 2020 is available Net Income...
1- Assume that the following data relative to Rice Company for
2020 is available
Net Income $3,984,000:
Transactions in Common Shares Change Cumulative
Jan. 1,2020 Beginning number 650,000
Apr. 1,2020 Purchase of treasury shares (50,000) 600,000
June 1,2020 100% stock dividend 600,000 1,200,000
Dec 1,2020 Issuance of shares 200,000 1,400,000
5% Cumulative Preferred Stock:
$1,000,000 sold at par on January 1,2020 convertible
into 200,000 shares of common stock
Stock options:
Exercisable at the option of $30 per share. Average market price...
Assume that the following data relative to Eddy Company for 2021 is available: Net Income for...
Assume that the following data relative to Eddy Company for 2021
is available:
Net Income for the year : $2,100,000;
On Jan.1,there are 700 ,000 shares of common shares
outstanding
transactions in common shares:
May purchase of 60,000 treasury shares
June stock split 2-1
Nov issuance of 120,000 shares
8% Cumulative Convertible Preferred Stock: $1,000,000,
convertible into 200,000 shares of common stock. (adjusted for
split)
Stock Options: exercisable to 60,000 shares of common stock at
the price of $25 per...
Assume that the following data relative to Dakota Company for 2015 is available: Net Income $2,500,000...
Assume that the following data relative to Dakota Company for
2015 is available: Net Income $2,500,000 Jan. 1, 2015, Beginning
number of Common Shares 600,000 Transactions in Common Shares in
2015 On February 1, the corporation purchased on the market 100,000
of its own outstanding shares. On May 1, the corporation declared
and issued a 2-for-1 stock split. On August 1, the corporation
issued 200,000 new shares to raise additional capital. On November
1, the corporation issued a 10% stock...
The following data for Hello Company for 2020 is available:
The following data for Hello Company for 2020 is available:Transactions in Common
Shares Jan. 1, 2020, Beginning
number
550,000Apr. 1, 2020, Purchase of treasury
shares
(50,000)July 1, 2020, Stock dividend of
50% Nov. 1, 2020, Issuance of new
shares
250,0004% Cumulative Convertible Preferred Stock10,000 shares, par value is $100, convertible into 150,000
shares ofcommon stock (already adjusted for the stock
dividend).
$1,000,000Stock Options50,000 exercisable at the option price of $10 per share.Average market price in 2020 was $25.(market price and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT