Net income was $262,000 for the year. Throughout the year the company had outstanding 20,000 shares of $2.00, $100 par value preferred stock and 111,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.) $ 262,000 Net income Add: Dividends required on preferred stock Net income available for common stockholders Number of common share outstanding Earnings per share-basic $ 262,000 Which of the following circumstances requires an explanatory paragraph in the independent auditors' report? Multiple Choice Uncertainties about the outcome of a significant event that would have affected the presentation of the financial statements if the outcome could have been estimated. Substantial doubt about the entity's ability to continue as a going concern. ) A material change from a prior accounting period in the application of an accounting principle. An explanatory paragraph in the independent auditors' report is required in each of these circumstances. O Basing the opinion in part on the work of another auditor. Net income was $262,000 for the year. Throughout the year the company had outstanding 20,000 shares of $2.00, $100 par value preferred stock and 111,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.) $ 262,000 Net income Add: Dividends required on preferred stock Net income available for common stockholders Number of common share outstanding Earnings per share-basic $ 262,000 Which of the following circumstances requires an explanatory paragraph in the independent auditors' report? Multiple Choice Uncertainties about the outcome of a significant event that would have affected the presentation of the financial statements if the outcome could have been estimated. Substantial doubt about the entity's ability to continue as a going concern. ) A material change from a prior accounting period in the application of an accounting principle. An explanatory paragraph in the independent auditors' report is required in each of these circumstances. O Basing the opinion in part on the work of another auditor