Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your answer is correct Assume that Novak Corp. earned net income of $3,500,000 during 2021. In addition, it had 96,000 shares of 9%, $100 par

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Your answer is correct Assume that Novak Corp. earned net income of $3,500,000 during 2021. In addition, it had 96,000 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 (a). (Round answer to 2 decimal places, es $2.55.) Earnings Per Share S 1.99 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, c.8. $2.55.) Earnings Per Share $ On January 1.2021, Novak Corp. had 480.000 shares of common stock outstanding. During 2021. it had the following transaction that affected the Common Stock account February 1 Issued 117.000 shares March 1 Issued a 10% stock dividend May 2 Acquired 101.000 shares of treasury stock June 1 Issued a 3-for 1 stock split October 1 Reissued 62000 shares of treasury stock Your answer is correct Determine the weighted average number of shares outstanding as of December 31, 2021. 1.751425 The weighted average number of shares outstanding Your answer is correct. Assume that Novak Corp.earned net income of $3,500,000 during 2021. In addition, it had 96,000 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 (a). (Round answer to 2 decimal places, eg. $2.55.) Earnings Per Share 1.99 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, es $2.55.) Earnings Per Share

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

Internal Audit In Higher Education

Authors: Alison Holmes, Sally Brown

1st Edition

0749433000, 978-0749433000

More Books

Students also viewed these Accounting questions