Kiwi Charter Corp. reported $1,445,710 of profit for 2020. On November 2, 2020, it declared and paid
Question:
Kiwi Charter Corp. reported $1,445,710 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred dividends of $155,000. On January 1, 2020, Kiwi had 80,000 and 240,000 outstanding preferred and common shares, respectively. The following transactions changed the number of shares outstanding during the year:
Feb. 1 Declared and issued a 20% common share dividend.
Apr. 30 Sold 135,000 common shares for cash.
May 1 Sold 50,000 preferred shares for cash.
Oct. 31 Sold 30,000 common shares for cash.
a. What is the amount of profit available for distribution to the common shareholders?
b. What is the weighted-average number of common shares for the year?
c. What is the earnings per share for the year?
Analysis Component: Did the sale of preferred shares on May 1, 2020, affect the basic earnings per common share?
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
a Profit 1445710 Less Preferred dividends 155000 Earnings available to common sh...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
