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I don't understand what I did wrong on these questions. The Alford Group had 220,000 shares of common stock outstanding at January 1, 2021. The
I don't understand what I did wrong on these questions.
The Alford Group had 220,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding. 2021 Feb. 28 Purchased 24,000 shares of treasury stock. Oct. 31 Sold the treasury shares purchased on February 28. Nov. 30 Issued 96,000 new shares. Dec. 31 Net income for 2021 is $1,590,000. 2022 Jan. 15 Declared and issued a 2-for-1 stock split. Dec. 31 Net income for 2022 is $1,590,000. Required: 1. Determine the 2021 EPS. (Do not round intermediate calculations.) 2. Determine the 2022 EPS. 3. At what amount will the 2021 EPS be presented in the 2022 comparative financial statements? (For all requirements, Enter your answers in thousands.) Numerator Denominator Earnings per Share 1. $ 1,590,000 212,000 - $ 7.50 2. $ 1,590,000 632,000 = $ 2.52 3. 1,590,000 424,000 - 3.75 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. $ IS Information from the financial statements of Ames Fabricators, Inc., included the following: December 31 2021 2020 100,000 100,000 Common shares Convertible preferred shares (convertible into 32,000 shares of common) 8% convertible bonds (convertible into 30,000 shares of common) 12,000 12,000 $1,000,000 $1,000,000 Ames's net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in thousands (For example, 100,000 should be entered as 100). Do not round intermediate calculations.) Numerator 1 Denominator Earnings per Share Basic $ 440,000 100,000 4.40 Diluted $ 560,000 162,000 - *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 3.46Step by Step Solution
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