Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued...

Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 6,800 shares on July 1, issued a 20% stock dividend on October 1, and issued 18,300 shares on December 1. For 2020, the company reported net income of $408,000 after a loss from discontinued operations of $64,000 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company’s financial statements for the year ended December 31, 2020, were issued on February 28, 2021.

Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.75.)

Net income per share
		Earnings per share
Income per share before discontinued operations		$enter a dollar amount
Discontinued operations loss per share, net of tax		$enter a dollar amount

Expert Solution

Answer:

Finding the number of outstanding shares for Dec 31 ,2020
Details	Number of shares	Weight of Period	Weighted no of shares	Total no of Outstanding shares	Remarks
Commom shares outstanding on Dec 31,2019	102000	1	102000	102000
Add March 1 issue of shares	12000	=10/12	10000	112000
Less : July 1 retiring of shares	(6800)	0.50	(3400)	108600
Oct 1 Issue of Stock dividends 20%	21720	1	21720	130320	no time weight for shares issued free of consideration, considered effective from start of previous periods
Dec 1. issue of shares	18300	=1/12	1525	131845
2 for 1 stock split done on Feb 28 2021				263690	2-for -1 split done on Feb 28,2021 but needs to be considered as if happened during the end of prior period as the shares are without consideration and financial statement not published by Feb 28,20121
So total no of Common shares outstanding as on Dec 31 ,2020 for EPS calculation =263690

EPS Calculation
Total Outstanding common shares as on Dec 31,2020	263690
Net Income before loss from discountinued operation	$ 472000
EPS before loss from discountinued operation	$ 1.79
After tax Income/(Loss) From Discontnued Operation	(64000)
Loss per share from discontinued Operation	$ (0.24)
Net Income per share =$1.79-$0.24=	$ 1.55

ekkarill92 answered 2 years ago

Wildhorse Corporation had 118,000 common shares outstanding on December 31, 2019. During 2020, the company issued...

Wildhorse Corporation had 118,000 common shares outstanding on December 31, 2019. During 2020, the company issued 14,000 shares on March 1, retired 6,500 shares on July 1, issued a 20% stock dividend on October 1, and issued 21,300 shares on December 1. For 2020, the company reported net income of $472,000 after a loss from discontinued operations of $67,600 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company’s financial statements for the...

On December 31, 2019, Sandhill Corporation had 140,000 common shares outstanding. On April 30, 2020, the...

On December 31, 2019, Sandhill Corporation had 140,000 common shares outstanding. On April 30, 2020, the company issued an additional 50,000 common shares for cash. On July 31, 2020, the company repurchased and cancelled 20,000 common shares. During the year ended December 31, 2020, Sandhill earned income before taxes of $40,000,000. Not included in this income was a loss from discontinued operations of $5,000,000 before tax. The company was subject to a 25% income tax rate. Calculate earnings per share(From...

Marigold Corp. had 1540000 shares of common stock issued and outstanding at December 31, 2020. On...

Marigold Corp. had 1540000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021 an additional 1255000 shares were issued for cash. Marigold also had stock options outstanding at the beginning and end of 2021 which allow the holders to purchase 370000 shares of common stock at $20 per share. The average market price of Marigold's common stock was $25 during 2021. What is the number of shares that should be used in computing diluted...

On January 1, 2020, Cullumber Corporation had $1,125,000 of common stock outstanding that was issued at...

On January 1, 2020, Cullumber Corporation had $1,125,000 of common stock outstanding that was issued at par. It also had retained earnings of $746,500. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $410,000 for the year. Journalize the declaration of a 16% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $19. b. Par value is $5, and market...

On December 31, 2021, Cullumber Company had 1,265,000 shares of $5 par common stock issued and...

On December 31, 2021, Cullumber Company had 1,265,000 shares of $5 par common stock issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here. Common Stock $6,325,000 Additional Paid-in Capital 1,885,000 Retained Earnings 1,260,000 Transactions during 2022 and other information related to stockholders’ equity accounts were as follows. 1. On January 10, issued at $108 per share 117,000 shares of $104 par value, 8% cumulative preferred stock. 2. On February 8, reacquired 12,400 shares of its...

5a) If MSG Corporation issued $102,000 of 3-year, 7% bonds outstanding on December 31, 2020 for...

5a) If MSG Corporation issued $102,000 of 3-year, 7% bonds outstanding on December 31, 2020 for $106,000. The bonds pay interest annually and MSG uses straight-line amortization. On May 1, 2021, $10,200 of the bonds were retired at 120. As a result of the retirement, MSG will report: (Do not round intermediate calculations and round final answer to nearest whole dollar.) Multiple Choice a $1,640 loss. a $1,684 loss. a $3,280 loss. a $3,280 gain. 5b) But then on January...

Crane Inc., a publicly traded company, had 291,000 common shares outstanding on December 31, 2019. During...

Crane Inc., a publicly traded company, had 291,000 common shares outstanding on December 31, 2019. During 2020, the company issued 6,600 shares on May 1 and retired 15,000 shares on October 31. For 2020, the company reported net income of $294,530 after a loss from discontinued operations of $44,000 (net of tax). Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share Income per share before...

Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it...

Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives on June 30, 2020, and which gave them the right to purchase shares of Ferry's stock at an option price of $35 per share. The average market price of Ferry's common stock for 2020 was $50. Net income was $1,000,000. SHOW ALL COMPUTATIONS> Compute EPS. Compute DEPS.

Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition,...