Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Alford Group had 330,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are

The Alford Group had 330,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.

2018
Feb. 28 Purchased 27,000 shares of treasury stock.
Oct. 31 Sold the treasury shares purchased on February 28.
Nov. 30 Issued 108,000 new shares.
Dec. 31 Net income for 2018 is $642,000.
2019
Jan. 15 Declared and issued a 2-for-1 stock split.
Dec. 31 Net income for 2019 is $642,000.

Required:

1. Determine the 2018 EPS. 2. Determine the 2019 EPS. 3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements? (For all requirements, Enter your answers in thousands.)

The Alford Group had 330,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shares during the year. There are no potential common shares outstanding.

2018
Feb. 28 Purchased 27,000 shares of treasury stock.
Oct. 31 Sold the treasury shares purchased on February 28.
Nov. 30 Issued 108,000 new shares.
Dec. 31 Net income for 2018 is $642,000.
2019
Jan. 15 Declared and issued a 2-for-1 stock split.
Dec. 31 Net income for 2019 is $642,000.

Required:

1. Determine the 2018 EPS. 2. Determine the 2019 EPS. 3. At what amount will the 2018 EPS be presented in the 2019 comparative financial statements? (For all requirements, Enter your answers in thousands.) Numerator / Denominator = Earning per share

1.

2.

3.

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

Applications Of Statistical Sampling To Auditing

Authors: Alvin A. Arens, James K. Loebbecke

1st Edition

0130391565, 978-0130391568

More Books

Students also viewed these Accounting questions

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago