Question
(Earnings per Share) The stockholders equity section of Hendly Corporation appears below as of December 31, 2020. 8% preferred stock, $50 par value, authorized 100,000
(Earnings per Share) The stockholders equity section of Hendly Corporation appears below as of December 31, 2020.
8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares$ 4,500,000
Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000
Additional paid-in capital 20,500,000
Retained earnings (includes 2020 net income of $33,000,000) 167,000,000
Net income $202,000,000
Net income for 2020 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $360,000 were declared and paid in 2020. Dividends of $1,000,000 were declared and paid to common stockholders in 2020. Instructions Compute earnings per share data as it should appear on the income statement of Hendly Corporation.
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