Company reports $480,000 of net income for 2005 and declares $65,000 of cash dividends on its preferred stock for 2005. At the beginning of 2005, the company had 50,000 outstanding shares of common stock. Three events change the number of outstanding common shares during-year 2005.

June 1 Issued 30,000 common shares for cash.

Sept. 1 Purchased 13,000 shares of its own common stock.

Oct. 1 Completed a 3-for-l stock split.

1. What amount of net income is available to common stockholders for 2005?

Check (2) 189,500 shares 2. What is the weighted-average number of common shares outstanding for 2005?

3. What is the company’s basic EPS for 2005?