Earnings per Share

The 2018 balance sheet for Guthrie Corporation revealed the following information:

• Common stock, $10 par, 50,000 shares issued and outstanding
• Preferred stock, $100 par, 6%, cumulative stock, 1,000 shares issued and outstanding

During 2019, Guthrie reported net income of $225,000 and engaged in the following stock transactions:

Mar. 1		Issued 10,000 shares of common stock for cash.
Apr. 1		Reacquired 2,000 shares of common stock as treasury stock.
Aug. 1		Resold 1,000 shares of treasury stock for cash.
Sept. 1		Declared and issued a 50% stock dividend on common stock.

Required:

1. Determine if Guthrie has a simple or complex capital structure. Simple capital 2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2019 income statement. Round your answer to the nearest whole number. fill in the blank 2 shares 3. Compute the basic EPS that would be disclosed by Guthrie. Round your answer to 2 decimal places. Basic EPS $fill in the blank 3