During 2009, Arthur Corporation reported a net income of $3,059,000. On January 1, Arthur had 2,800,000 shares

Question:

During 2009, Arthur Corporation reported a net income of $3,059,000. On January 1, Arthur had 2,800,000 shares of common stock outstanding. The company issued an additional 1,680,000 shares of common stock on October 1. In 2009, the company had a simple capital structure. During 2010, there were no transactions involving common stock, and the company reported net income of $4,032,000.

1. Determine the weighted-average number of common shares outstanding each year.

2. Compute earnings per share for each year.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...