Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 10, Problem 10.8E
Exercise 10.8
LO 9
Calculate EPS and effect of stock split on EPS During the year ended December 31, 2017, Gluco, Inc., split its stock on a 3 for-i basis. In its annual report for 2016, the firm reported net income of $925,980 for 2016, with an average 268,400 shares of common stock outstanding for that year. There was no
Required:
- What amount of net income for 2016 will be reported in Gluco’s 2017 annual report?
- Calculate Gluco’s earnings per share for 2016 that would have been reported in the 2016 annual report.
- Calculate Gluco’s earnings per share for 2016 that will be reported in the 2017 annual report for comparative purposes.
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Problem 6 (Adapted)Anna company presented the following account balances in the shareholders’ equity section for the year ended December 31, 2018: Preference share capital, 12% P50 par, P3,000,000, Ordinary share capital, P100 par, P6,000,000 and deficit, (P1,350,000). No dividends have been paid on the preference share since 2016. Determine the book value per share under the following conditions:a. Preference share is preferred as to assetsb. Preference share is preferred as to dividend
Question 12
General Electric’s balance sheet had the following as of 12/31/2019: Total Common Equity ($3,000,000), Common Shares Outstanding (300,000). During 2020, the firm had $590,000 in net income, and it paid out $150,000 in dividends. What was the book value per share on 12/31/2020, assuming not common stock was issued or retired during 2020? Round to the nearest second decimal and show your work.
Exercise 11-13 Earnings per share LO A1
Kelley Company reports $1,625,000 of net income for 2017 and declares $227,500 of cash dividends on its preferred stock
for 2017. At the end of 2017, the company had 340,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders for 2017?
Net income
To preferred stockholders
Net income available to common stockholders
2. What is the company's basic EPS for 2017?
Basic Earnings per Share
Choose Numerator:
Choose Denominator:
Basic Earnings per Share
Basic earnings per share
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