1) Retroactive application of stock splits and stock dividends to the weighted-average number of common shares makes EPS comparable for prior and current periods of one entity. 2) When computing basic EPS, the numerator includes net income minus the A) present value of stock options B) current year preferred dividends paid and current year preferred dividends in arrears C) cost of interest paid on bonds, net of tax D) cash paid for dividends during the year 3) The retroactive assumption for stock dividends and splits helps financial statement users to A) recompute their net worth in the company B) be assured that management is effective C) hold management accountable for poor timing in the decision D) compare the company's EPS changes over time 4) Which one of the following items is not a way for management to influence EPS computations to meet target goals? A) measurements of impairments on plant, property and equipment B) determination of tax contingencies C) recording the sale of merchandise on account D) choice of inventory cost flow assumptions 5) George Manufacturing had net income of $275,000 and declared preferred dividends of $20,000 during the current year. George began the year with 16,000 common shares outstanding It issued 60,000 shares on June 30 and repurchased 12,000 of the newly issued shares on November 1. Compute George's weighted-average common shares outstanding for the year. A) 64,000 B) 44,000 C) 74,000 D) 76,000 1) Retroactive application of stock splits and stock dividends to the weighted-average number of common shares makes EPS comparable for prior and current periods of one entity. 2) When computing basic EPS, the numerator includes net income minus the A) present value of stock options B) current year preferred dividends paid and current year preferred dividends in arrears C) cost of interest paid on bonds, net of tax D) cash paid for dividends during the year 3) The retroactive assumption for stock dividends and splits helps financial statement users to A) recompute their net worth in the company B) be assured that management is effective C) hold management accountable for poor timing in the decision D) compare the company's EPS changes over time 4) Which one of the following items is not a way for management to influence EPS computations to meet target goals? A) measurements of impairments on plant, property and equipment B) determination of tax contingencies C) recording the sale of merchandise on account D) choice of inventory cost flow assumptions 5) George Manufacturing had net income of $275,000 and declared preferred dividends of $20,000 during the current year. George began the year with 16,000 common shares outstanding It issued 60,000 shares on June 30 and repurchased 12,000 of the newly issued shares on November 1. Compute George's weighted-average common shares outstanding for the year. A) 64,000 B) 44,000 C) 74,000 D) 76,000