When calculating the weighted average number of common shares, how are stock dividends and stock splits treated?

Question:

When calculating the weighted average number of common shares, how are stock dividends and stock splits treated? Compare this treatment with that of additional shares sold for cash in midyear.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

See More Books

Question Posted: Jul 11, 2013 03:43 AM

See More Questions

Stock Dividends and Stock Splits At December 31, 2010, Green Company and Blue Company have identical amounts of common stock and retained earnings as follows: Common Stock, $10 par, 50,000 shares...
Stock Dividends and Stock Splits Whitacre Companys Stockholders Equity section of the balance sheet on December 31, 2009, was as follows: Common stock, $10 par value, 60,000 shares issued and...
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout 2016, and is also declaring a stock...
1. [20 points] A mattress manufacturer has three production facilities located in Pittsburg (PA), Houston (TX), and Los Angeles (CA). They supply their products to three distribution centers in...
Greene Enterprises prepares monthly departmental reports in an effort to control its operating costs. Each department has a manager to whom the report is addressed and who is held responsible for the...
Explain where each of these items would appear on a multiple-step income statement: gain on disposal of plant assets; cost of goods sold; depreciation expense; and sales returns and allowances.
Evaluate the state of religion in U.S. society.
Casey Hartwig, CPA, was retained by Global Cable to prepare financial statements for April 2017. Hartwig accumulated all the ledger balances per Globals records and found the following. Casey Hartwig...
Your grandparents put $1,000 into a saving account for you when you were born 25 years ago. This account has been earning interest at a compound rate of 8%. Fill out the table below. What is its...
Determine the mobility (degrees of freedom) of the mechanism shown in Fig. 5.39 (a) and (b) using Kutzbach mobility criterion and classify them. Determine the mobility (degrees of freedom) of the...
What is a simple capital structure? How is EPS determined for a company with a simple capital structure?
Blake Distributors had 100,000 common shares outstanding at the beginning of the year, January 1. On May 13, Blake distributed a 5% stock dividend. On August 1, 1,200 shares were retired. What is the...
If 2200 J of heat are added to a 190-g object, its temperature increases by 12 C. (a) What is the heat capacity of this object? (b) What is the object's specific heat?
As you run your firm, you'll need to plan cash balances and inventories. How do you decide how much of each is enough but not too much? ASSETS Current Assets. Cash Marketable Securities Accounts...
Question 4 Kai has recently been offered two jobs with Skill Ltd and Panda Ltd respectively. The only difference between the two job offers is the type of pension they provide. Skill Ltd, offers a...
Suppose a criminal case has been heard at a state trial court and the defendant has been found guilty. The defendant and his legal team believe he has been wrongfully convicted and decide to appeal...
use the data from your table greatest to least number of particles. Justify your answers. to rank the samples from Carbon 240 Oxygen 18 Rank the substances in terms of their numbers of particles:...
I need help with Part A and Part B: Part A - Order Tracking (15 points) In this part we want to change the way our ordering system works. If you look at the constructor of the FastFoodKitchen class...
Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period. Merchandise (gross) a. $5,000 b. $20,000 Terms 2/10, n/60 1/15,...
What are the typical record-at-a-time operations for accessing a file? Which of these depend on the current file record?
Annie runs a fitness centre. On December 31, 2017, she bought an existing business with exercise equipment and a building worth $300,000. During 2018, business improved and she bought some new...
Analysis of Subsequent Expenditures Accardo Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in...
Analysis of Subsequent Expenditures Accardo Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in...
Analysis of Subsequent Expenditures The following transactions occurred during 2011. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a...
A project that costs $4,450 to install will provide annual cash flows of $1,500 for each of the next 6 years. a. What is NPV if the discount rate is 11%? b. How high can the discount rate be before...
Prove MM1: Both Umbrella Inc. and Prixxa Inc. produce $300,000 of cash flow each year. Umbrella has no debt outstanding, and its cost of equity capital is 14 percent. But Prixxa has 1,000,000 depts...
How did they find the over head rate percentages for current year and last year? A job order cost sheet for Cullumber Company is shown below. Job No. 92 For 2,000 Units Date Direct Materials Direct...

When calculating the weighted average number of common shares, how are stock dividends and stock splits treated?

Question:

Step by Step Answer:

There is a fundamental difference between the increase in shares caused by stock dividen...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions