Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help. The company is a simple capital structure. I have tried four times (after 5 attempts, I lose all points) to determine the weighted
Please help. The company is a simple capital structure. I have tried four times (after 5 attempts, I lose all points) to determine the weighted average number of shares that Concord would use in calculating earnings per share for the fiscal year ended: May 31, 2020 & May 31, 2021
The answers I have tried but were incorrect were as follows:
2020 $1,262,200
2021 $1,429,467
2020 $1,408,000
2021 $2,153,500
2020 $1,249,733
2021 $1,376,800
2020 $1,320,000
2021 $1,889,500
Concord Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2020, and May 31, 2021. The income from operations for the fiscal year ended May 31, 2020, was $1,738,000 and income from operations for the fiscal year ended May 31,2021 , was $2,443,000. In both years, the company incurred a 9% interest expense on $2,381,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $570,000 on February 2021. The company uses a 20% effective tax rate for income taxes. The capital structure of Concord Corporation on June 1, 2019, consisted of 986,000 shares of common stock outstanding and 19,500 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants. On October 1, 2019, Concord sold an additional 501,000 shares of the common stock at $20 per share. Concord distributed a 20% stock dividend on the common shares outstanding on January 1, 2020. On December 1, 2020, Concord was able to sell an additional 805,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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