Question

Exercise 13-16 Earnings per share LO A1 Ecker Company reports $1,275,000 of net income and declares $178,500 of cash dividends on its preferred stock for the year. At year- end, the company had 290,000 weighted average shares of common stock 1. What amount of net income is available to common stockholders? Net income To preferred stockholders Net income available to common stockholders $ 2. What is the company's basic EPS? < Prev 3 of 8 Next > your search 199. 1:18 PM 1/31/202

Answer 1

1)

Net income	$1,275,000
To preferred stockholders	($178500)
Net income available to common stockholders	$1,096,500

2) Basic Earnings per Share

Choose Numerator:	/	Choose Denominator:	=	Basic Earnings per Share
Net income available to common stockholders	/	Weighted-average outstanding shares	=	Basic earnings per share
$1,096,500	/	290,000	=	$3.78