Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2021, Pina Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock
On January 1, 2021, Pina Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 March 1 May 1 June 1 October 1 Issued 125,000 shares Issued a 10% stock dividend Acquired 97,000 shares of treasury stock Issued a 3-for-1 stock split Reissued 62,000 shares of treasury stock Part 1 Determine the weighted average number of shares outstanding as of December 31, 2021. The weighted average number of shares outstanding Part 2 Assume that Pina Corp. earned net income of $3,550,000 during 2021. 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 2021. Compute earnings per share for 2021, using the weighted- average number of shares determined in part (2). (Round answer to 2 decimal places, e.g. $2.55.) Earnings Per Share $ Part 3 Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings Per Share $ $ Part 4 Assume the same facts as in part (b), except that net income included a loss from discontinued operations of $454,000 (net of tax). Compute earnings per share for 2021. (Round answer to 2 decimal places, e.g. $2.55.) Pina Corp Income Statement $
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