Question

The Alford Group had 150.000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding. 2018 Feb. 28 Purchased 3,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 12,000 new shares. Dec. 31 Net income for 2018 is $1,639,000. 2019 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2019 is $1,639,000. Required: 1. Determine the 2018 EPS. 2. Determine the 2019 EPS. 3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements? (For all requirements, Enter your answers in thousands.) Numerator 1 Denominator = Earnings per Share

Answer 1

-Answers 201B prefenene dividend= $0. Numerator I,639,000 Nel income benominator Wughled avenAge no. of shares, /2018- 31/18 150,00 shares x 12 S0,000 (25D0) 12/31 1231 3000 2h to/31 1000 u30-1281 12000 X 49,000 weighted avenaage share cutslandring = $ 634000 2018 EPS - $ 1 per share (2) 2019: ¢ b634000 pe lenence dividend $o. Neti ncome= Numerator weghted qvenage no- of shares Denominatur ISODO0 3000 +3000 + 12000) 161000 x 2 - 324,000 shares stock 1639/000 20(9 EPS 32yo0 S.06. per share

( FOTe compana tive punpose, the 2-for-stock split m 2019 needs to be retroactuelyappled eanlet data being presenkd ie, January 2og to he 49poo weighted avenage shares outstanding frorn 2018 X2 Retroactive application of SiDce split 298,000 weghted average shares for 2018 por Compaenative peorpose L629000 201e EPS - = ¢5.5 29&000 2019 EPS 163,000 S.06 7 3LurOo0