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Assume that the following data relative to Kane Company for 2018 is available: Net Income $2,890,000 Transactions in Common Shares Change Cumulative Jan. 1, 2018,
Assume that the following data relative to Kane Company for 2018 is available:
Net Income | $2,890,000 | |||||
Transactions in Common Shares | Change | Cumulative | ||||
Jan. 1, 2018, Beginning number | 740,000 | |||||
Mar. 1, 2018, Purchase of treasury shares | (72,000) | 668,000 | ||||
June 1, 2018, Stock split 2-1 | 668,000 | 1,336,000 | ||||
Nov. 1, 2018, Issuance of shares | 222,000 | 1,558,000 | ||||
6% Cumulative Convertible Preferred Stock | ||||||
Sold at par, convertible into 180,000 shares of common (adjusted for split). | $900,000 | |||||
Stock Options | ||||||
Exercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split). | 90,000 | shares
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Part 1
Compute weighted average shares outstanding for 2018.
Part 2
Compute the basic earnings per share for 2018. (Round answer to 2 decimal places, e.g. 52.75.)
Part 3
Compute the diluted earnings per share for 2018. (Round answer to 2 decimal places, e.g. 52.75.)
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