Question
BlossomCorporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders.Blossom's fiscal year ends May 31.
BlossomCorporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders.Blossom's fiscal year ends May 31. The following information is available.
1.Income from operations before income tax forBlossomwas $1,400,000and $1,800,000, respectively, for the fiscal years ended May 31, 2021, and 2020.
2.Blossomexperienced a loss from discontinued operations of $400,000from a business segment disposed of on March 3, 2021.
3.A 20% combined income tax rate applies to all ofBlossomCorporation's profits, gains, and losses.
4.Blossom's capital structure consists of preferred shares and common shares. The company has not issued any convertible securities or warrants and there are no outstanding stock options.
5.Blossomissued133,000of $10 par value, 5% cumulative preferred shares in 2013. All of these shares are outstanding, and no preferred dividends are in arrears.
6.There were1.60million common shares outstanding on June 1, 2019. On September 1, 2019,Blossomsold an additional500,000common shares at $16per share.Blossomdistributed a 20% stock dividend on the common shares outstanding on December 1, 2020.
7.These were the only common share transactions during the past two fiscal years.
Determine the weighted average number of common shares that would be used in calculating earnings per share on the current comparative income statement for:
1.The year ended May 31, 2021 =
2.The year ended May 31, 2020 =
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