Question

On January 1, 2021, Sweet Corp. had 479,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 117,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 103,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 59,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding enter the weighted-average number of shares outstanding as of December 31, 2018 eTextbook and Media Assume that Sweet Corp. earned net income of $3,408,000 during 2021. In addition, it had 102,000 shares of 10%, $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 2021.

Compute earnings per share for 2021, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)

Earnings Per Share $enter earnings per share rounded to 2 decimal places eTextbook and Media Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.)

Earnings Per Share $enter earnings per share rounded to 2 decimal places eTextbook and Media Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $426,000 (net of tax).

Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Sweet Corp.

Income Statement choose the accounting period select an opening name for this statement $enter a dollar amount per share rounded to 2 decimal places select an income statement item enter a dollar amount per share rounded to 2 decimal places select a closing name for this statement enter a total earnings per share amount rounded to 2 decimal places

Answer 1

a)
Events	Dates Outstanding	Shares Outstanding	Restatement	Fraction of Year	Weighted Shares
Beginning balance	Jan. 1–Feb. 1	479,000.00	1.1 X 3.0	1/12	131,725.00
Issued shares	Feb. 1–Mar. 1	596,000.00	1.1 X 3.0	1/12	163,900.00
Stock dividend	Mar. 1–May 1	655,600.00	3	2/12	327,800.00
Reacquired shares	May 1–June 1	552,600.00	3	1/12	138,150.00
Stock split	June 1–Oct. 1	1,657,800.00		4/12	552,600.00
Reissued shares	Oct. 1–Dec. 31	1,716,800.00		3/12	429,200.00
	Weighted-average number of shares outstanding				1,743,375.00
b)
EPS = $3,408,000 (Net Income)/ 1,743,375(Weighted-Average Shares)	$                         1.95	per share
c)
EPS = $3,408,000 (Net Income) - 1020000 (Preferred Dividend)/ 1,743,375 (Weighted-Average Shares)	$                         1.37	per share
*  Preferred dividend = 102000 x 100 x 10%	1020000
d)
Sweet Corp.
Income Statement
For the year ended Dec 31		EPS
Net Income	$           3,408,000.00	$                         1.95
less:  loss from discontinued operations	$              426,000.00	$                         0.24
Income from continuing operations	$           2,982,000.00	$                         1.71