Hello, I need some help with an accounting problem. Wildhorse Corporation had 118,000 common shares outstanding...
Hello, I need some help with an accounting problem.
Wildhorse Corporation had 118,000 common shares outstanding on
December 31, 2019. During 2020, the company issued 14,000 shares on
March 1, retired 6,500 shares on July 1, issued a 20% stock
dividend on October 1, and issued 21,300 shares on December 1. For
2020, the company reported net income of $472,000 after a loss from
discontinued operations of $67,600 (net of tax). The company issued
a 2-for-1 stock split on February 1, 2021, and the company’s
financial statements for the year ended December 31, 2020, were
issued on February 28, 2021.
Calculate earnings per share for 2020 as it should be reported to
shareholders. (Round answer to 2 decimal places, e.g.
15.75.)
|
Income per share before discontinued operations Discontinued operations loss per share, net of tax Net income per share |
Thank you
Homework Answers
| Computation of weighted average outastanding shares | |||||
| Number of shares | Stock Dividend Restatement | No. of months | Total Months | Weighted-average shares | |
| Shares outstanding | 118000 | 1.2 | 12 | 12 | 141600 |
| Issued shares | 14000 | 1.2 | 10 | 12 | 14000 |
| Reacquired Shares | -6500 | 1.2 | 6 | 12 | -3900 |
| Reissued shares | 21000 | 1 | 12 | 1750 | |
| Total weighted average number of shares outstanding | 153450 |
Income per share before discontinued operations (4720000+67600)/153450 |
3.52 |
| Discontinued operations loss per share, net of tax (67600/153450) | -0.44 |
| Net income | 3.08 |
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