Question

Hardaway Fixtures' balance sheet at December 31, 2020, included the following: Shares issued and outstanding: Common...

Hardaway Fixtures' balance sheet at December 31, 2020, included the following:

Shares issued and outstanding:
Common stock, $1 par $ 940,000
Nonconvertible preferred stock, $50 par 15,000

  
On July 21, 2021, Hardaway issued a 25% stock dividend on its common stock. On December 12, it paid $40,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2021, was $3,400,000.

Required:

Compute Hardaway's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Do not round intermediate calculations.)

Business   Accounting   
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Answer #1

Ans

Earning per share= $2.86(ROund to two decimals)

Working:-

Earning available to equity shareholders Net income - preferred dividend
3400-40
3360
Equity shares outstanding 940*1.25
1175
Earning per share= 3360/1175
2.859574468
2.86 Round up to two decimals
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