FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Earnings per Share
The 2018
- Common stock, $10 par, 50,000 shares issued and outstanding
- Preferred stock, $100 par, 6%, cumulative stock, 1,000 shares issued and outstanding
During 2019, Guthrie reported net income of $225,000 and engaged in the following stock transactions:
| Mar. 1 | Issued 10,000 shares of common stock for cash. | |
| Apr. 1 | Reacquired 2,000 shares of common stock as |
|
| Aug. 1 | Resold 1,000 shares of treasury stock for cash. | |
| Sept. 1 | Declared and issued a 50% stock dividend on common stock. |
Required:
1. Determine if Guthrie has a simple or complex capital structure.
2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2019 income statement. Round your answer to the nearest whole number.
shares
3. Compute the basic EPS that would be disclosed by Guthrie. Round your answer to 2 decimal places.
Basic EPS $
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