Drain Surgeon Company had 320,000 shares outstanding from January through March 2017. They repurchased 30,000 on May 1 and issued 20,000 shares on September

REQUIRED:

1. Calculate the weighted average number of preferred shares outstanding
2. Calculate the basic earnings per share Net income of $160,000 in 2017 and no preferred shares outstanding.
3. Assuming the following:

Income from continuing operations of $380,000

Loss from discontinued operations of $100,000 (net of tax)

Net Income of $280,000

Preferred Shares, $5 cumulative, 100,000 shares authorized, 50,000 issued and outstanding

Preferred dividends in arrears one year

1. 1. Calculate Earnings per share
2. 2. Show Income Statement presentation of EPS: