Problem

Calculate EPS and effect of stock split on EPS During the year ended December 31, 2011, Gl...

Calculate EPS and effect of stock split on EPS During the year ended December 31, 2011, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2010, the firm reported net income of $3,703,920 for 2010, with an average 268,400 shares of common stock outstanding for that year. There was no preferred stock.

Required:

a.What amount of net income for 2010 will be reported in Gluco’s 2011 annual report?


b. Calculate Gluco’s earnings per share for 2010 that would have been reported in the 2010 annual report.


c. Calculate Gluco’s earnings per share for 2010 that will be reported in the 2011 annual report for comparative purposes.

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Solutions For Problems in Chapter 10