The following condensed financial statements for Tomac Corporation were prepared by the accounting department.

Instructions:
Compute the basic EPS under each of the following independent assumptions (the company has a simple capital structure).
1. No change in the capital structure occurred in 2008.
2. On December 31, 2007, there were 120,000 shares outstanding. On May 1,2008,60,000 shares were sold at par, and on October 1, 2008, 20,000 shares were sold at par.
3. On December 31, 2007, there were 160,000 shares outstanding. On July 1, 2008, the company issued a 25% stockdividend.

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Tomac Corporation Income Statement For the Year Ended December 31, 2008 Sales Cost of goods sold Gross profit on sales $12,000,000 10,000,000 2,000,000 Selling expense $500,000 340,000 24,000 864,000 $1,136,000 446,000 $ 690,000 (60,000) $ 630,000 Interest expense Income from continuing operations before income taxes Income taxes Income from continuing operations Extraordinary loss, net of tax savings Net income lomac corporation Balance Sheet December 31, 2008 Assets ,$5,300,000 Liabilities Current liabilities 6% bonds, due December 31, 2012 ...$1.450,000 900,000 Common stock, $10 par, 200,000 shares authorized, issued and outstanding Additional paid-in capital Retained earnings 2,000,000 600,000 350,000 $5,300,000 Total liabilities and stockholders equity