Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Please help and Explain, Thank you! Calculating EPS: Simple Capital Structure and 3 years C-Bay Inc.'s accounting year ends on December 31. During the following

image text in transcribedPlease help and Explain, Thank you!

Calculating EPS: Simple Capital Structure and 3 years C-Bay Inc.'s accounting year ends on December 31. During the following three years, its common shares outstanding changed as follows. 2022 2021 2020 Shares outstanding, January 1 120,000 96,000 80,000 Sales of shares, April 1, 2020 16,000 25% stock dividend, July 1, 2021 24,000 2-for-1 stock split, July 1, 2022 120,000 Shares sold, October 1, 2022 40,000 Shares outstanding, December 31 280,000 120,000 96,000 Required a. For purposes of calculating EPS at the end of each year, determine the number of shares outstanding. Hint consider each reporting year separately. 2022 2021 2020 Number of shares 0 0 0 b. For purposes of calculating EPS at the end of 2022, when comparative statements are being prepared on a three-year basis, determine the number of shares outstanding for each year. 2022 2020 Number of shares 2021 0 0 0 c. Compute EPS for each year based on computations in part b. Assume net income is $450,000, $396,000, and $358,800, for years 2022, 2021, and 2020, respectively. Note: Round earnings per share amounts to two decimal places. Net Income Available to Weighted Avg. Common Per Basic EPS Common Stockholders Shares Outstanding Share 2020 0 $ $ 0 0 2021 $ 0 0 $ 0 2022 $ 0 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Auditing

Authors: Alan Millichamp, John Taylor

12th Edition

9781473778993

Students also viewed these Finance questions