On
January 1, 2018 Oriole Corp had 484000 shares of common stock
outstanding. During 2018 it had the following transactions that
affected the common stock account.
Feb 1 Issued 116000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 99000 shares of treasury stock
June 1 Issued a 3 for 1 stock split
October 1 Reissued 61000 shares of treasury stock
a. Determine the weighted average number of shares outstanding
as of December 31, 2018.
The weighted average number of shares outstanding is
b. Assume that Oriole Corp earned income of $3296000 during
2018. In addition it had 105000 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 2018.
Compute earning per share for 2018. using the weighted average
number of shares determined in part a.
c. Assume the same facts as in ort b except that the preferred
stock was cumulative. Complete earnings per share for 2018.
Earnings Per Share is
d. Assume the same facts as in part b except that net income
included a loss from discontinued operations of $413000 net of tax.
Compute earnings per share for 2018.