Question

In: Accounting

Junkyard Arts, Inc., had earnings of $332,000 for the year. The company had 29,000 shares of...

Junkyard Arts, Inc., had earnings of $332,000 for the year. The company had 29,000 shares of common stock outstanding during the year and issued 3,700 shares of $150 par value preferred stock. The preferred stock has a dividend of $9 per share. There were no transactions in either common or preferred stock during the year.

Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places.
$per share

Solutions

Expert Solution

EPS = Net Income available to Common Shareholder_____

           Weighted average no. of common shares outstanding

Net Income available to Common Shareholder = Total Income- Preferred Dividend

                                                                                 = 332000 – (3700*9)

                                                                                 = $ 298700

There were no transactions in common stock during the year. Therefore, the weighted average is equal to the number of common shares outstanding: 29,000 shares

EPS = $ 298700/ 29000 = $10.30 per share

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Determine the basic earnings per share for Junkyard arts for the year
Junkyard arts inc has earnings of $316,000 for the year.The company had 40,000 shares of common stock outstanding during the year and issued 15,000 shares of $50 par value preferred stock. The Preferred stock has a dividend of $1.60 per share.There were no transactions in either common or  preferred stock during the year Determine the basic earnings per share for Junkyard arts for the year 
Throughout the year, Johnson Inc. had the following shares outstanding. There were no shares issued or...
Throughout the year, Johnson Inc. had the following shares outstanding. There were no shares issued or repurchased during the year. Preferred shares, $3.00, unlimited number authorized,60,000 issued and outstanding $12,000,000 Common shares, unlimited number authorized, 420,000 issued and outstanding . 24,000,000 Total contributed capital $36,000,000 Net income for the year was $ 1,590,000. Loss from discontinued operations (net of tax)of $-159,000was included in net income for the year. Required: Prepare the basic EPS presentation for the company assuming: 1.The preferred...
On January 1, 2018, Edward Corporation had 29,000 shares of $5 par value common stock and...
On January 1, 2018, Edward Corporation had 29,000 shares of $5 par value common stock and 29,000 shares of 7%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 2-for-1 conversion privilege. On October 1, 2018, all of the preferred shares were converted to common. What number of shares must Edward use in computing basic earnings per share at December 31, 2018?
Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and...
Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and profits from prior years. On June 30, 2016 Betta paid a dividend of 35 per share to all shareholders. Bob and his three brothers each owned 25 shares of Betta. Each invested $10,000 to start the company and made no further investment in Betta. In November 2016 Bob and his wife got divorced and he needed money to pay her settlement. To raise the...
Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and...
Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and profits from prior years. On June 30, 2016 Betta paid a dividend of 35 per share to all shareholders. Bob and his three brothers each owned 25 shares of Betta. Each invested $10,000 to start the company and made no further investment in Betta. In November 2016 Bob and his wife got divorced and he needed money to pay her settlement. To raise the...
Reporting Earnings per Share Disclosures Siera Inc. had 350,000 shares of no par common stock outstanding...
Reporting Earnings per Share Disclosures Siera Inc. had 350,000 shares of no par common stock outstanding throughout 2020 that declared and paid dividends of $75,000 in 2020. The company also had 45,000 shares of preferred stock that paid dividends of $7,500 in 2020 (declared in 2020). The company reported the following amounts in its income statement for the year ended December 31, 2020 (pretax). Income from continuing operations $1,875,000 Loss from discontinued operations 52,500 Required a. Prepare the earnings per...
Dove, Inc., had additions to retained earnings for the year just ended of $630,000. The firm...
Dove, Inc., had additions to retained earnings for the year just ended of $630,000. The firm paid out $105,000 in cash dividends, and it has ending total equity of $7.25 million. a. If the company currently has 620,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If the stock currently sells for $29.50...
Rossdale, Inc., had additions to retained earnings for the year just ended of $626,000. The firm...
Rossdale, Inc., had additions to retained earnings for the year just ended of $626,000. The firm paid out $125,000 in cash dividends, and it has ending total equity of $7.21 million. If the company currently has 580,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Earnings per share $ Dividends per share $ Book...
Rossdale, Inc., had additions to retained earnings for the year just ended of $643,000. The firm...
Rossdale, Inc., had additions to retained earnings for the year just ended of $643,000. The firm paid out $40,000 in cash dividends, and it has ending total equity of $7.38 million. If the company currently has 750,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Earnings per share $ Dividends per share $ Book...
Dove, Inc., had additions to retained earnings for the year just ended of $635,000. The firm...
Dove, Inc., had additions to retained earnings for the year just ended of $635,000. The firm paid out $80,000 in cash dividends, and it has ending total equity of $7.30 million. a. If the company currently has 670,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. If the stock currently sells for $30.00...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT