FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 2023, Dow Steel Corporation had 780,000 shares of common stock and 48,000 shares of 10%, noncumulative,
nonconvertible preferred stock Issued and outstanding.
• Dow Issued a 5% common stock dividend on May 15 and paid cash dividends of $580,000 and $87,000 to common and
preferred shareholders, respectively, on December 15, 2024.
• On February 28, 2024, Dow sold 68,000 common shares.
• In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1.
• Dow's net Income for the year ended December 31, 2024, was $3,000,000. The Income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should
be entered as 10). Round "Earnings per share" answer to 2 decimal places.
Numerator
Denominator
Earnings per share
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Transcribed Image Text:On December 31, 2023, Dow Steel Corporation had 780,000 shares of common stock and 48,000 shares of 10%, noncumulative, nonconvertible preferred stock Issued and outstanding. • Dow Issued a 5% common stock dividend on May 15 and paid cash dividends of $580,000 and $87,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 68,000 common shares. • In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1. • Dow's net Income for the year ended December 31, 2024, was $3,000,000. The Income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
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