During all of 2011, Cougar Inc. had outstanding 180,000 shares of common stock and 16,000 shares of

Question:

During all of 2011, Cougar Inc. had outstanding 180,000 shares of common stock and 16,000 shares of $5 preferred stock. Each share of the preferred stock is convertible into five shares of common stock. For 2011, Cougar had a $175,000 loss from operations; no dividends were paid or declared.

Compute the basic and diluted earnings (loss) per share for Cougar, assuming that

(1) The preferred stock is noncumulative and

(2) The preferred stock is cumulative.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...