Question

In: Accounting

Basic Earnings per Share Monona Company reported net income of $29,975 for 2019. During all of...

Basic Earnings per Share

Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of $17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was $17.50.

Required:

1. Compute Monona's basic earnings per share for 2019. If required, round your answer to two decimal places.
$ per share

Solutions

Expert Solution

Net income 29975
Less: Preferred Dividends 10000 =1000*100*10%
Net income for Common Stockholders 19975
Divide by Common Shares outstanding 8500 =7000+(2000*9/12)
Basic earnings per share for 2019 2.35 per share

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Earnings per Share, Extraordinary Item The net income reported on the income statement of Goth Co....
Earnings per Share, Extraordinary Item The net income reported on the income statement of Goth Co. was $2,340,000. There were 100,000 shares of $23 par common stock and 40,000 shares of $6 preferred stock outstanding throughout the current year. The income statement included two extraordinary items: a $470,000 gain from condemnation of land and a $180,000 loss arising from flood damage, both after applicable income tax. a. Determine the per-share figure for common stock for income before extraordinary items. Round...
1. Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is...
1. Determine the Basic and Diluted Earnings Per Share for Company X. All necessary Information is listed below. Show your calculations. 2. In 100 words, or fewer, explain why investors should be more interested in the the Diluted EPS number than the Basic EPS number. Company X information for Diluted Shares calculations for period 201X: Earnings for Year 201X - $20 million Average Basic shares outstanding for Company X in 201X – 10 million Average Stock Price for year 201X...
What is the Basic and Diluted earnings per Share?
What is the Basic and Diluted earnings per Share?
Comparative Earnings per Share Lucas Company reports net income of $5,125 for the year ended December...
Comparative Earnings per Share Lucas Company reports net income of $5,125 for the year ended December 31, 2016, its first year of operations. On January 4, 2016, Lucas issued 9,000 shares of common stock. On August 2, 2016, it issued an additional 3,000 shares of stock, resulting in 12,000 shares outstanding at year-end. During 2017, Lucas earned net income of $16,400. It issued 2,000 additional shares of stock on March 3, 2017, and declared and issued a 2-for-1 stock split...
Comparative Earnings per Share Lucas Company reports net income of $5,125 for the year ended December...
Comparative Earnings per Share Lucas Company reports net income of $5,125 for the year ended December 31, 2016, its first year of operations. On January 4, 2016, Lucas issued 9,000 shares of common stock. On August 2, 2016, it issued an additional 3,000 shares of stock, resulting in 12,000 shares outstanding at year-end. During 2017, Lucas earned net income of $16,400. It issued 2,000 additional shares of stock on March 3, 2017, and declared and issued a 2-for-1 stock split...
Earning per share 1. Burns Company reported $752.4 million in net income in 2018. On January...
Earning per share 1. Burns Company reported $752.4 million in net income in 2018. On January 1, 2018, the company had 400 million shares of common stock outstanding. On March 1, 2018, 24 million new shares of common stock were sold for cash. On June 1, 2018, the company's common stock split 2 for 1. On July 1, 2018, 8 million shares were reacquired as treasury stock. Required: Compute Burns' basic earnings per share for the year ended December 31,...
Except for the earnings per share statistics, the 2019, 2020, and 2021 income statements for Ace...
Except for the earnings per share statistics, the 2019, 2020, and 2021 income statements for Ace Group Inc. were originally presented as follows: Required: 1. Calculate the 11 missing amounts. (Loss should be indicated by a minus sign.) Answer is complete and correct. 2019 2020 2021 Sales $486,855 $707,040 $1,018,900 Costs and expenses 167,420selected answer correct 254,500selected answer correct 333,570 Profit from continuing operations $319,435 $452,540selected answer correct $685,330selected answer correct Gain (loss) on discontinued operations (161,191)selected answer correct 85,410...
WildhorseCorporation is preparing earnings per share data for 2020. The net income for the year ended...
WildhorseCorporation is preparing earnings per share data for 2020. The net income for the year ended December 31, 2020 was $410,000 and there were 59,700 common shares outstanding during the entire year. Wildhorse has the following two convertible securities outstanding: 10% convertible bonds (each $1,000 bond is convertible into 20 common shares) $100,000 3% convertible $100 par value preferred shares (each share is convertible into 2 common shares) $53,000 Both convertible securities were issued at face value in 2017. There...
Earnings per share (EPS) is calculated using net earnings if a company follows IFRS. what are...
Earnings per share (EPS) is calculated using net earnings if a company follows IFRS. what are the pros and cons of calculating EPS on comprehensive income rather than net income
Assume that today is 1/1/19. High Tech Chip Company is expected to have net income per share (earnings per share) of $64 in 2022.
Assume that today is 1/1/19. High Tech Chip Company is expected to have net income per share (earnings per share) of $64 in 2022. What do you expect the dividend to be in 2022? Assume that the payout ratio in the future will be the same as it has been in the past.EPS in 2014 =   $10                                 Dividend paid per share in 2014 =     $7EPS in 2015 =   $20                                 Dividend paid per share in 2015 =     $14EPS in 2016 =  ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT