Computing EPS: Simple Capital Structure

At the end of 2020, the records of Block Corporation reflected the following.

Common stock, $5 par, authorized 1,000,000 shares

Outstanding January 1, 2020, 800,000 shares $4,000,000

Sold and issued April 1, 2020, 4,000 shares 20,000

Issued 5% stock dividend, September 30, 2020; 40,200 shares 201,000

Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 100,000 shares

Outstanding during year, 40,000 shares 400,000

Paid-in capital in excess of par, common stock 360,000

Paid-in capital in excess of par, preferred stock 200,000

Retained earnings (after the effects of current preferred dividends declared during 2020) 1,280,000

Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020 2,000,000

Net income 311,600

Income tax rate, 25%

a. Compute the required EPS amount(s) for the following. 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.

b. Compute the required EPS amount(s) for the following, assuming that the preferred stock is cumulative. 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