At January 1, 2020, Buffalo Company’s outstanding shares included the following. 298,000 shares of $50 par...
At January 1, 2020, Buffalo Company’s outstanding shares
included the following.
| 298,000 shares of $50 par value, 7% cumulative preferred stock |
| 921,000 shares of $1 par value common stock |
Net income for 2020 was $2,560,000. No cash dividends were declared
or paid during 2020. On February 15, 2021, however, all preferred
dividends in arrears were paid, together with a 5% stock dividend
on common shares. There were no dividends in arrears prior to
2020.
On April 1, 2020, 426,000 shares of common stock were sold for $10
per share, and on October 1, 2020, 106,000 shares of common stock
were purchased for $21 per share and held as treasury stock.
Compute earnings per share for 2020. Assume that financial
statements for 2020 were issued in March 2021. (Round
answer to 2 decimal places, e.g. $2.55.)
| Earnings per share |
$ |
Homework Answers
The earnings per share = Net income available for common shareholders/ Weighted average number of shares
= $1,517,000/1,274,700 = 1.19
The earnings per share = $1.19
Notes
1) Net income available for common shareholders = Net Income - Preferred Share Dividend
= $2,560,000 - (298,000 shares*$50)*7%
= $2,560,000 -$1,043,000
Net income available for common shareholders = $1,517,000
2) Weighted Average of shares as of Mar 31 2021
Beginning balance = (921,000)/4 = 230,250
Shares issued = (921,000+426,000)/2 = 673,500
Shares bought back = (921,000+426,000-106,000)/4 = 310,250
Weighted average no. of shares = 230,250+673,500+310,250 = 1,214,000
Stock dividend on common shares =5%
Weighted average no. of shares = 1,214,000*(1+5%)
Weighted average no. of shares = 1,274,700
Add Answer to:
At January 1, 2020, Buffalo Company’s outstanding shares
included the following.
298,000 shares of $50 par...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2017 was $2,560,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 426,000 shares...
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par...
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par value, 8% cumulative preferred stock 886,000 shares of $1 par value common stock Net income for 2017 was $2,513,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 429,000 shares...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Larkspur Company's outstanding shares inc...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Larkspur Company's outstanding shares included the following. 300,000 shares of $50 par value, 7% cumulative preferred stock 959,000 shares of $1 par value common stock Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Metlock Company's outstanding shares incl...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Metlock Company's outstanding shares included the following. 307,000 shares of $50 par value, 7% cumulative preferred stock 909,000 shares of $1 par value common stock Net income for 2020 was $2,543,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 2 --/1 View Policies Current Attempt in Progress At January 1, 2020, Martinez Company's outstanding...
Question 2 --/1 View Policies Current Attempt in Progress At January 1, 2020, Martinez Company's outstanding shares included the following. 283,000 shares of $50 par value, 7% cumulative preferred stock 942,000 shares of $1 par value common stock Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 2 0/1 View Policies Show Attempt History Current Attempt in Progress X Your answer is...
Question 2 0/1 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. At January 1, 2020, Martinez Company's outstanding shares included the following. 283,000 shares of $50 par value, 7% cumulative preferred stock 942,000 shares of $1 par value common stock Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on...
On January 2, 2020, the Jing Company received its charter. It issued all of its authorized 6,000 shares of no-par...
On January 2, 2020, the Jing Company received its charter. It issued all of its authorized 6,000 shares of no-par preferred stock at $106 per share and all of its 12.000 authorized shares of no-par common stock at $42 per share. The preferred stock has a stated value of $60 per share, is entitled to a basic cumulative dividend of $7 per share, is callable at $110 beginning in 2022, and is entitled to $100 per share plus cumulative dividends...
At December 31, 2020 and 2021, Coronado Industries had outstanding 4300 shares of $100 par value...
At December 31, 2020 and 2021, Coronado Industries had outstanding 4300 shares of $100 par value 6% cumulative preferred stock and 20000 shares of $10 par value common stock. At December 31, 2020, dividends in arrears on the preferred stock were $12100. Cash dividends declared in 2021 totaled $46000. What amounts were payable on each class of stock?
For all of 2019 and 2020, Gentry had the following stock issued and outstanding: Preferred: 7,000...
For all of 2019 and 2020, Gentry had the following stock issued and outstanding: Preferred: 7,000 shares, 5%, $50 par value per share Common: 8,000 shares, $20 par value per share For 2020, Gentry declared a dividend of $40,000. For 2019, Gentry paid a preferred dividend of $2,000. Required: (1) For each of the three independent cases below, find how the $40,000 dividend for 2020 is payable to preferred and common shareholders. Use a format similar to that provided for...
1. BonitaCorp. issues 2800 shares of $10 par value common stock at $15 per share. When...
1. BonitaCorp. issues 2800 shares of $10 par value common stock
at $15 per share. When the transaction is recorded, credits are
made to
Common Stock $28000 and Retained Earnings $14000.
Common Stock $28000 and Paid-in Capital in Excess of Par
$14000.
2. VaughnCompany is authorized to issue 9000 shares of 7%, $100
par value preferred stock and 532000 shares of no-par common stock
with a stated value of $1 per share. If Vaughn issues 4500 shares
of preferred stock...
At January 1, 2017, Pina Company's outstanding shares included the following. 298,000 shares of $50 par value, 7% cumulative preferred stock 921,000 shares of $1 par value common stock Net income for 2017 was $2,560,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 426,000 shares...
At January 1, 2017, Martinez Company's outstanding shares included the following. 298,000 shares of $50 par value, 8% cumulative preferred stock 886,000 shares of $1 par value common stock Net income for 2017 was $2,513,000. No cash dividends were declared or paid during 2017. On February 15, 2018, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2017. On April 1, 2017, 429,000 shares...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Larkspur Company's outstanding shares included the following. 300,000 shares of $50 par value, 7% cumulative preferred stock 959,000 shares of $1 par value common stock Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 3 --/1 View Policies Current Attempt in Progress At January 1, 2020, Metlock Company's outstanding shares included the following. 307,000 shares of $50 par value, 7% cumulative preferred stock 909,000 shares of $1 par value common stock Net income for 2020 was $2,543,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 2 --/1 View Policies Current Attempt in Progress At January 1, 2020, Martinez Company's outstanding shares included the following. 283,000 shares of $50 par value, 7% cumulative preferred stock 942,000 shares of $1 par value common stock Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears...
Question 2 0/1 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. At January 1, 2020, Martinez Company's outstanding shares included the following. 283,000 shares of $50 par value, 7% cumulative preferred stock 942,000 shares of $1 par value common stock Net income for 2020 was $2,521,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on...
On January 2, 2020, the Jing Company received its charter. It issued all of its authorized 6,000 shares of no-par preferred stock at $106 per share and all of its 12.000 authorized shares of no-par common stock at $42 per share. The preferred stock has a stated value of $60 per share, is entitled to a basic cumulative dividend of $7 per share, is callable at $110 beginning in 2022, and is entitled to $100 per share plus cumulative dividends...
For all of 2019 and 2020, Gentry had the following stock issued and outstanding: Preferred: 7,000 shares, 5%, $50 par value per share Common: 8,000 shares, $20 par value per share For 2020, Gentry declared a dividend of $40,000. For 2019, Gentry paid a preferred dividend of $2,000. Required: (1) For each of the three independent cases below, find how the $40,000 dividend for 2020 is payable to preferred and common shareholders. Use a format similar to that provided for...
1. BonitaCorp. issues 2800 shares of $10 par value common stock
at $15 per share. When the transaction is recorded, credits are
made to
Common Stock $28000 and Retained Earnings $14000.
Common Stock $28000 and Paid-in Capital in Excess of Par
$14000.
2. VaughnCompany is authorized to issue 9000 shares of 7%, $100
par value preferred stock and 532000 shares of no-par common stock
with a stated value of $1 per share. If Vaughn issues 4500 shares
of preferred stock...
Most questions answered within 3 hours.
-
The activation energy for a given reaction is 50.3 kJ/mol. If
the rate constant for the...
asked 1 minute from now -
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 1 hour ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 3 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 4 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 5 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 5 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 5 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 5 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 6 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 6 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago