Calculating EPS: Simple Capital Structure

Select Corporation was incorporated on January 2, 2020. The following information pertains to Select Corporation's 2020 common stock transactions.

Jan. 2 Number of shares authorized 500,000

Jan. 2 Number of shares issued 170,000

Jul. 1 Number of shares reacquired but not canceled 10,000

Sept. 1 Two-for-one stock split

Dec. 1 Reissued shares of treasury stock 10,000

a. Determine the weighted-average number of shares of Select Corporation's common stock outstanding. Note: Round amount to the nearest whole number.

b. Compute earnings per share for 2020 considering the following additional information: Net income: $627,000 Preferred stock, 5%, cumulative, 10,000 shares outstanding, $10 par value per share Preferred stock dividends declared in 2020: $0 Note: Round earnings per share amount to two decimal places.

1.Net Income Available to Common Stockholders

2.Weighted Avg. Common Shares Outstanding

3.Per Share