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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
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 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 $ 0Step by Step Solution
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