Question
On January 1, 2015, Wilke Corp. had 540,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock
On January 1, 2015, Wilke Corp. had 540,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account.
February 1 Issued 146,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 100,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,300 shares of treasury stock
(a) Determine the weighted-average number of shares outstanding as of December 31, 2015. The weighted-average number of shares outstanding-----------
(b) Assume that Wilke Corp. earned net income of $3,315,000 during 2015. In addition, it had 120,000 shares of 10%, $103 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 2015. Compute earnings per share for 2015, using the weightedaverage number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share--------
(c) Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.) Earnings Per Share $--------
(d) Assume the same facts as in part (b), except that net income included an extraordinary gain of $918,000 and a loss from discontinued operations of $529,000. Both items are net of applicable income taxes. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
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