Blossom Corporation is preparing the comparative financial statements to be included in the annual report to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Blossom Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Blossom employs a fiscal year ending May 31. Income from operations before income taxes for Blossom was $1,349,000 and $684,000, respectively, for fiscal years ended May 31, 2021 and 2020. Blossom experienced a loss from discontinued operations of $365,000 on March 3, 2021. A 20% combined income tax rate pertains to any and all of Blossom Corporation's profits, gains, and losses. Blossom's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Blossom issued 43,300 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears. There were 908,400 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Blossom sold an additional 412,800 shares of the common stock at $16 per share. Blossom distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years. (a) Your answer has been saved. See score details after the due date. Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for: Weighted-average number of common shares (1) The year ended May 31, 2020. 1218000 (2) The year ended May 31, 2021. 1461600 Attempts: 1 of 1 used (b) Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2021 and 2020. The statement will be part of Blossom Corporation's annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.) BLOSSOM CORPORATION Comparative Income Statement For the Years Ended May 31, 2021 and 2020 2021 2020 $ 2$ $4 2$ Per share of common stock $ $4 $ $ Blossom Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Blossom employs a fiscal year ending May 31. Income from operations before income taxes for Blossom was $1,349,000 and $684,000, respectively, for fiscal years ended May 31, 2021 and 2020. Blossom experienced a loss from discontinued operations of $365,000 on March 3, 2021. A 20% combined income tax rate pertains to any and all of Blossom Corporation's profits, gains, and losses. Blossom's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options. Blossom issued 43,300 shares of $100 par value, 6% cumulative preferred stock in 2017. All of this stock is outstanding, and no preferred dividends are in arrears. There were 908,400 shares of $1 par common stock outstanding on June 1, 2019. On September 1, 2019, Blossom sold an additional 412,800 shares of the common stock at $16 per share. Blossom distributed a 20% stock dividend on the common shares outstanding on December 1, 2020. These were the only common stock transactions during the past 2 fiscal years. (a) Your answer has been saved. See score details after the due date. Determine the weighted-average number of common shares that would be used in computing earnings per share on the current comparative income statement for: Weighted-average number of common shares (1) The year ended May 31, 2020. 1218000 (2) The year ended May 31, 2021. 1461600 Attempts: 1 of 1 used (b) Starting with income from operations before income taxes, prepare a comparative income statement for the years ended May 31, 2021 and 2020. The statement will be part of Blossom Corporation's annual report to stockholders and should include appropriate earnings per share presentation. (Round earnings per share to 2 decimal places, e.g. $2.55.) BLOSSOM CORPORATION Comparative Income Statement For the Years Ended May 31, 2021 and 2020 2021 2020 $ 2$ $4 2$ Per share of common stock $ $4 $ $
Expert Answer:
Answer rating: 100% (QA)
a Calculation of Weighted average number of common shares 1 Date Shares Outstanding No of Months out... View the full answer
Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
Students also viewed these accounting questions
-
Accounting CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXY Cookie Creations 4 - Natalie had a very busy December. At the end of the mon CALCULATOR PRINTER VERSION BACK NI 360 2,400 960 600 5,380...
-
Agassi AG is preparing the comparative financial statements to be included in the annual report to shareholders. Agassi employs a fiscal year ending May 31. Income before income tax for Agassi was...
-
Loretta Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Loretta's fiscal year ends May 31. The following...
-
Suppose the following model describes the relationship between annual salary (salary) and the number of previous years of labor market experience (exper): log(salary) = 10.6 + .027 exper. (i) What is...
-
What are the four major areas in which logistics can create a competitive advantage for a company?
-
A firm uses the indirect method. Using the following information, what is its net cash flow from operating activities? Net income...
-
Identify which of the following numbers are irrational: \(\frac{13}{\sqrt{46}}, 4+13 \pi, \sqrt{144}, \frac{5}{9}\)
-
On January 13, 2013, Precision Oil Company purchased a drilling truck for $90,000. Precision expects the truck to last five years or 200,000 miles, with an estimated residual value of $15,000 at the...
-
H6. Show calculation . Suppose a 10??year, $1,000 bond with an 8.3% coupon rate and semi??annual coupons is trading for a price of $1,035.12. a. What is the band's yield to maturity (expressed as a...
-
Neighborhood Supermarkets is preparing to go public, and you are asked to assist the firm by preparing its statement of cash flows for 20X1. Neighborhoods balance sheets at December 31, 20X0, and...
-
The purpose of this assessment is to ensure each student is able to document a critical reflection of their personal learning process, as experienced during this unit (ULO 1). Weight 10% of the total...
-
In what ways can the resource-based view of the firm be used to analyze organizational capabilities and behavior?
-
1.The health care provider prescribes 30 mg of methylphenidate to a child with autism. The methylphenidate is to be given in two divided doses. The concentration is 10 mg/5 mL. How many milliliters...
-
Price discrimination is a common feature of many oligopolistic markets. Describe the different types of price discrimination, and examine whether a two-sided market (i.e., a platform) is also a form...
-
The product cost of the garment is $75. The targeted gross profit % is 35%.what is The selling price ?
-
During a test, you already got 21 correct answers out of 33. 1. Give an expression for your grade as a function of the number of additional correct answers 2. How many more correct answers do you...
-
Se contrat a un nuevo gerente de fbrica para una empresa queexperimentaba tasas de produccin lentas y volmenes de produccininferiores a los exigidos por la gerencia. Tras la investigacin 1 answer
-
Air pollution generated by a steel mill is an example of a) a positive production externality. b) a negative production externality. c) a public good. d) the free-rider problem. State and local taxes...
-
Suppose that in Problem 5.14 you wanted to create a portfolio that consists of stock X and stock Y. Compute the portfolio expected return and portfolio risk for each of the following percentages...
-
Management of a soft-drink bottling company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly relates to travel time within a...
-
Each day at a large hospital, several hundred laboratory tests are performed. The rate at which these tests are done improperly (and therefore need to be redone) seems steady, at about 4%. In an...
-
The market interest rate is 15 percent. What is the price of a consol bond that pays \($120\) annually?
-
Assuming an interest rate of 10 percent, calculate the present value of the following streams of yearly payments: a. \($1,000\) per year forever, with the first payment one year from today. b....
-
World Transportation, Inc., is expected to initiate its quarterly dividend of \($1\) five years from today and the dividend is expected to remain constant permanently. What is the price of World...
Study smarter with the SolutionInn App