Part 1
Basic EPS = net income / number of outstanding shares = 214500/40000 = $5.36
Part 2
Retained earnings = beginning retained earnings + net income – dividends = 1100000+214500 = $1314500
Year 1 wN Brighton Company Year 0 3 Cash 50,000.00 4 Accounts Receivable 275,000.00 5 Inventory...
Consider Brighton’s results for Year 0 (see excel click here). The sales forecast for Year 1 is given in excel. In addition, Brighton plans on paying dividends of $20,000 in Year 1, they have 40,000 shares of common stock outstanding and for simplification, assume their tax expense is 35% of EBT. For Year 1, forecast Brighton’s: Basic Earnings per common share (rounded to the nearest cent). Retained earnings (rounded to the nearest dollar). Brighton Company Year 0 Year 1 Cash...