Question

Paul Corporation reported net income of $260,000 during the current calendar year. The company had 10,000...

Paul Corporation reported net income of $260,000 during the current calendar year. The company had 10,000 common shares outstanding on January 1 and sold an additional 6,000 shares on July 1. What is the company’s basic EPS?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
EPS = Net income / Weighted average no of shares outstanding
        = $260,000 / 13,000
        = $20 per share
Calculation of weighted average number of shares outstanding
Amount ($) Fraction Weightages Weighted average
of Year number of shares
    10,000.00 12/12             1.00              10,000.00
      6,000.00 6/12             0.50               3,000.00
13,000.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1)Beta reported $6,000,000 in net income for the current year. The company had $500,000 of 10%...
1)Beta reported $6,000,000 in net income for the current year. The company had $500,000 of 10% non-convertible preferred stock outstanding all year and $5,000,000 of 6% convertible bonds outstanding all year. Assuming the convertible bonds are dilutive, determine the numerator of both basic and diluted EPS when the tax rate is 40%. 2)On February 4, 2016, Investor purchased 15% of Investee common stock for $62,000. Investee’s net income for the years ended December 31 2016 and 2017 were $18,000 and...
A company reports net income in the current year of $600,000. During the year, the company...
A company reports net income in the current year of $600,000. During the year, the company declares and pays $20,000 in cash dividends on its common stock and $80,000 in dividends on its convertible preferred stock. The company has 20,000 shares of the preferred stock outstanding all year and each isconvertible into three shares of common stock. The company starts the year with 170,000 shares of common stock outstanding. On July 1 of that year, 20,000 additional shares of common...
Meyer Corporation reported net income for 2015 of $282,000. Meyer’s fiscal year is the same as...
Meyer Corporation reported net income for 2015 of $282,000. Meyer’s fiscal year is the same as the calendar year. Meyer’s tax rate is 20%. At the beginning of 2015, Meyer had 120,000 shares of $1 par value common shares outstanding. Also at the beginning of 2015, Meyer had 4,000 outstanding options with an exercise price of $25 each. On September 1, Meyer issued 3,000 shares of common stock for $60 per share. Meyer paid dividends of $2 per share to...
Richdards Sweet Potatoes, Inc, had 10,000 shares of stock outstanding on January 1. During the year...
Richdards Sweet Potatoes, Inc, had 10,000 shares of stock outstanding on January 1. During the year he sold 3,000 shares on March 31st, 6,000 shares on July 1st, and 8,000 shares on October 1st. If the Net Income for the year was $96,000, what was the approximate EPS? A. 7.11 B. 3.20 C. 3.56 D. 5.57 E. none of the listed choices
Vaquita reported net income for the year of $1,810,000 and declared dividends of $453,000. At the...
Vaquita reported net income for the year of $1,810,000 and declared dividends of $453,000. At the beginning of the year, the company had 906,000 shares of common stock and no shares of preferred stock outstanding, and at the end of the year they had sold an additional 1,558,320 shares of common stock. What should Vaquita report as EPS for the period?
Sugarland Industries reported a net income of $820,750 on December 31, 2018. At the beginning of...
Sugarland Industries reported a net income of $820,750 on December 31, 2018. At the beginning of the year, the company had 570,000 common shares outstanding. On April 1, the company sold 31,200 shares for cash. On August 31, the company issued 56,400 additional shares as part of a merger. Required: Compute Sugarland's net income that would produce a basic EPS of $2.35 per share for 2018.
Last year, East Corporation reported basic and diluted EPS in an amount less than basic EPS...
Last year, East Corporation reported basic and diluted EPS in an amount less than basic EPS due to outstanding stock options. Those options were excercised on January 1 of the current year. During the current year, East Corporation had 15.0 million shares of common stock outstanding. Three thousand eight hundred 10% convertible bonds, each with $1,000 face value, were issued at face amount at the beginning of the year. East reported net income of $3.8 million for the year. Each...
During the current year, High Corporation had 4.9 million shares of common stock outstanding. $7,875,000 of...
During the current year, High Corporation had 4.9 million shares of common stock outstanding. $7,875,000 of 20% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $5.9 million and net income of $4.9 million for the year. The bonds are convertible into 815,000 shares of common. What is diluted EPS (rounded)?
During the current year, High Corporation had 5.0 million shares of common stock outstanding. $8,025,000 of...
During the current year, High Corporation had 5.0 million shares of common stock outstanding. $8,025,000 of 17% convertible bonds were issued at face amount at the beginning of the year. High reported income before tax of $6.0 million and net income of $5.0 million for the year. The bonds are convertible into 825,000 shares of common. What is diluted EPS (rounded)? Choices are 1.09 2.73 1.23 1.05
Skysong Inc. had net income for the current year ending December 31, 2017 of $1,076,730. During...
Skysong Inc. had net income for the current year ending December 31, 2017 of $1,076,730. During the entire year, there were 509,000 common shares outstanding. The company had two classes of preferred shares outstanding: the Class A preferred shares were $2.31 cumulative shares of which 10,000 were outstanding, and were convertible to common shares at a rate of 1:1. There were 108,000 $6.31 Class B non-cumulative preferred shares outstanding that were also convertible at a rate of 1:1. Skysong had...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT