Question
At the end of 2016, the records of SouthCo showed the following: Bonds payable 8%, non-convertible $370,000 Preferred shares: Class A, no-par, 70 cents, non-convertible,
At the end of 2016, the records of SouthCo showed the following:
Bonds payable 8%, non-convertible | $370,000 | |
Preferred shares: | ||
Class A, no-par, 70 cents, non-convertible, non-cumulative, outstanding 60,000 shares (no dividend declared) | 390,000 | |
Class B, no-par, 50 cents, non-convertible, cumulative, outstanding 30,000 shares | 690,000 | |
Common shares, no-par, authorized unlimited shares: | ||
Outstanding, January 1, 2016, 168,000 shares | $1,730,000 | |
Retired shares, August 1, 2016, 39,000 shares | (339,745) | |
Issued, 150% stock dividend on September 1, 2016, on outstanding shares (193,500 additional shares) | 1,390,255 | |
Retained earnings (no dividends declared) | 1,790,000 | |
Income before discontinued operations | 147,781 | |
Discontinued operations, net of tax | 30,350 | |
Net income | $178,131 |
Average income tax rate, 30%. a) Calculate the preferred dividend claims. (Use 0 when the condition does not apply.) Please make sure your final answer(s) are accurate to the nearest whole number.
class a
class b
b) Calculate the weighted average number of common shares (WACS). Please make sure your final answer(s) are accurate to the nearest whole number.
jan 1 2016-july 31 2016
aug 1 2016- aug 31 2016
sep 1 2016- dec 31 2016
c) Calculate the earnings per share on common shares (EPS). Please make sure your final answer(s) are accurate to 2 decimal places.
Earnings per share on common shares:
Income before discontinued operations
Discontinued operations
Net income
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