Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, Sweet Industries had stock outstanding as follows. 8% Noncumulative preferred stock, $ 100 par value, issued and outstanding 244,000 shares $

On January 1, 2020, Sweet Industries had stock outstanding as follows.

8% Noncumulative preferred stock, $ 100 par value, issued and outstanding 244,000 shares $ 24,400,000
Common stock, $ 1 par value, issued and outstanding 570,000 shares 570,000

To acquire the net assets of three smaller companies, Sweet issued an additional 618,000 common shares. The acquisitions took place as follows.

Date of Acquisition

Shares Issued

MicroBio February 1, 2020

201,000

BioTech June 1, 2020

81,000

SuperBio November 1, 2020

336,000

On December 31, 2020, Sweet reported net income of $ 8,931,000 before taxes. No dividends on the common or preferred stock were declared during 2020. Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Sweet Industries as of December 31, 2020. (Round answer to 2 decimal places, e.g. 2.55.)

Earnings per share

$ enter the earnings per share in dollar rounded to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Cost Accounting

Authors: Robert E. Schmiedicke, Charles F. Nagy, Edward J. Vanderback, E.J. Vanderbeck C.F. Nagy

9th Edition

0538812915, 978-0538812917

More Books

Students also viewed these Accounting questions