Question
I need help with part 3 Earnings Per Share and part 4 Sarasota Income statement. Thanks On January 1, 2018, Sarasota Corp. had 491,000 shares
I need help with part 3 Earnings Per Share and part 4 Sarasota Income statement. Thanks
On January 1, 2018, Sarasota Corp. had 491,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account.
February 1 Issued 116,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 96,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 59,000 shares of treasury stock
Part 1
Determine the weighted-average number of shares outstanding as of December 31, 2018.
The weighted-average number of shares outstanding |
Part 1 1793950
Part 2
Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share |
Assume that Sarasota Corp. earned net income of $3,434,000 during 2018. In addition, it had 102,000 shares of 9%, $100 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2018. Compute earnings per share for 2018, using the weighted-average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share | $ |
Answer 1.91
Part 3
Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share | $enter earnings per share rounded to 2 decimal places |
Part 4
Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $443,000 (net of tax). Compute earnings per share for 2018. (Round answer to 2 decimal places, e.g. $2.55.)
Sarasota Corp. Income Statement choose the accounting period December 31, 2018For the Year Ended December 31, 2018For the Quarter Ended December 31, 2018 | ||
select an opening name for this statement DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $enter a dollar amount per share rounded to 2 decimal places | |
select an income statement item DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | enter a dollar amount per share rounded to 2 decimal places | |
select a closing name for this statement DividendsExpensesExtraordinary LossExtraordinary GainIncome Before Extraordinary ItemIncome From Continuing OperationsIncome Per Share Before Extraordinary ItemLoss From Discontinued OperationsNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | enter a total earnings per share amount rounded to 2 decimal places |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started