The stockholders’ equity section of Riverbed Corporation appears below as of December 31, 2017. 8% preferred...

The stockholders’ equity section of Riverbed Corporation appears below as of December 31, 2017.

8% preferred stock, $50 par value, authorized
101,534 shares, outstanding 91,534 shares		$4,576,700
Common stock, $1.00 par, authorized and issued 10,678,400 shares		10,678,400
Additional paid-in capital		20,535,300
Retained earnings	$134,073,000
Net income	36,960,000	171,033,000
		$206,823,400

Net income for 2017 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $11,162,800 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $366,136 were declared and paid in 2017. Dividends of $1,019,200 were declared and paid to common stockholders in 2017.

Compute earnings per share data as it should appear on the income statement of Riverbed Corporation.

Expert Solution

Computation of net income:
Net income after tax     $36,960,000
Net income before tax   $56,000,000 (36,960,000/66×100)
Add: Back major casualty loss $11,162,800
Income from operation              $67,162,800
Income tax 22,835,352 (67,162,800 × 34%)
Income before extraordinary ite $44,327,448
Extraordinary item:
Casualty loss                                           $11,162,800
Less: applicable income tax reduction $3,795,352
Net income                                                $36,960,000

Net income                                 $36,960,000
Less:provision for preferred $366,136 ($4,576,700 × 8%)
                           dividend
Income available for common(a)    $36,593,864
Common shares(b)                             10,678,400
Earning per share(a÷b)                     $3.43

Income statement presentation per share of common stock:
Income before extraordinary item   $4.12
Extraordinary item                              (0.69)
Net income                                            $3.43

Income before extraordinary item :
     (44,327,448 - 366,136)/ 10,678,400 = 4.12
Extraordinary item
     (11,162,800 - 3,795,352)/ 10,678,400 = 0.69

ekkarill92 answered 1 year ago

Exercise 4-10 The stockholders’ equity section of Nash Corporation appears below as of December 31, 2017....

Exercise 4-10 The stockholders’ equity section of Nash Corporation appears below as of December 31, 2017. 8% preferred stock, $50 par value, authorized 100,892 shares, outstanding 90,892 shares $4,544,600 Common stock, $1.00 par, authorized and issued 10,401,200 shares 10,401,200 Additional paid-in capital 20,533,000 Retained earnings $134,778,000 Net income 37,620,000 172,398,000 $207,876,800 Net income for 2017 reflects a total effective tax rate of 34%. Included in the net income figure is a loss of $13,010,500 (before tax) as a result of...

The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2017, appears below: ...

The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2017, appears below: Preferred Stock, 6%, $15 stated value, 50,000 shares authorized; 10,000 issued and outstanding 150,000 Paid-in capital in excess of stated value-preferred stock 30,000 Common stock, $10 par value, 400,000 shares authorized; 250,000 issued and outstanding 2,500,000 Paid-in capital in excess of par value-common stock 1,200,000 Retained earnings 600,000 During 2018, the following stock transactions occurred: Jan. 18 Issued 50,000 shares of common stock at $30 per share. Apr. 20 Purchased 25,000 shares...

The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders'...

The stockholders' equity section of Marigold Corp. balance sheet at December 31, 2019, appears below: Stockholders' equity Paid-in capital Common stock, $10 par value, 490,000 shares authorized; 320,000 issued and outstanding $3,200,000 Paid-in capital in excess of par 1,300,000 Total paid-in capital 4,500,000 Retained earnings 870,000 Total stockholders' equity $5,370,000 During 2020, the following stock transactions occurred: Jan. 18 Issued 88,000 shares of common stock at $22 per share. Aug. 20 Purchased 29,000 shares of Marigold Corp. common stock at...

Jungle Corporation's stockholder's equity section at December 31, 2014 appears below: Stockholders equity Paid in Capital...

Jungle Corporation's stockholder's equity section at December 31, 2014 appears below: Stockholders equity Paid in Capital Common stock, $10 par, 60,000 outstanding $600,000 Paid in Capital in excess of par 150,000 Total paid in capital $750,000 Retained Earnings 150,000 Total Stockholder's Equity $900,000 On June 30, 2015, the board of directors of Kenner Corp declared a 15% stock dividend, payable on July 31, 2015, to stockholders of record on July 15, 2015. The fair value of Kenner Corp's stock on...

Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...

Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...

The stockholders’ equity section of Fleming Corporation at December 31, 2009, included the following: 6% preferred...

The stockholders’ equity section of Fleming Corporation at December 31, 2009, included the following: 6% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding $1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding $2,000,000 Dividends were not declared on the preferred stock in 2009 and are in arrears. On September 15, 2010, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on...

Below you will find the shareholders’ equity section of Zuzu Corp. at December 31, 2017: Preferred...

Below you will find the shareholders’ equity section of Zuzu Corp. at December 31, 2017: Preferred shares, authorized 100,000 shares; issued 25,000 shares (note 1) $ 750,000 Common shares (unlimited authorized, 60,000 issued) 1,800,000 Contributed surplus 150,000 Total paid-in capital 2,700,000 Retained earnings 2,470,500 Total shareholders’ equity 5,170,500 Note 1: The preferred shares have a $2 dividend rate, are cumulative, and participate in distributions in excess of a $3 dividend on the common shares. Required: 1) No dividends were paid...

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock,...

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares $ 900,000 Paid-in capital in excess of par value 350,000 Retained earnings 300,000 $1,550,000 During 2015, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per...

Presented below is the stockholders' equity section of Concord Corporation at December 31, 2020: Common stock,...

Presented below is the stockholders' equity section of Concord Corporation at December 31, 2020: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45600 shares $ 912000 Paid-in capital in excess of par value 351000 Retained earnings 498000 $1761000 During 2021, the following transactions occurred relating to stockholders' equity: 3200 shares were reacquired at $29 per share. 3500 shares were reacquired at $34 per share. 1700 shares of treasury stock were sold at $31 per share. For the...

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000...

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000 Common stock 110,000 Additional paid in capital 7,401,500 Total paid-in capital 8,081,500 Retained earnings Treasury stock Total stockholders' equity $8,081,500 Date General Journal Debit Credit December 01, 2018 Dividends Dividends payable Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations: January 2...

Question