Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 20, Problem 20.3E
To determine
The weighted average number of common shares outstanding at the end of the year for basic and diluted earnings per share.
Giveninformation:
Common shares outstanding are 75,000.
Stock dividend at the beginning is 7%.
Incremental shares issued on April 1 are 18,000 shares.
Company purchases the
Implementation of 3-for-1 stock split on July 1.
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Conroe Excavation Consultants began the current year with 29,100 common shares outstanding. It issued additional shares of 16,200 and 18,900 on March 1 and September 1, respectively. The company also purchased 6,000 shares of treasury stock on October 1. The firm's year end is December 31. Based on
this information, compute the weighted-average number of common shares outstanding for Conroe Excavation Consultants assuming that the company implemented a 8% stock dividend on December 1. (Enter a decrease in shares outstanding with a minus sign or parentheses.)
Date
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1/1 Balance
3/1
New Issue
9/1 New Issue
10/1
Treasury Stock Purchase
Subtotal
12/1 8% Stock Dividend
12/31 Balance
Number of Shares
Outstanding
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Shares Are Outstanding
Weighted-Average
Shares Outstanding
.......
CNZ Co. had 1,270,000 shares outstanding at the beginning of the year—1 June 20X8. During the year, the following transactions occurred: 1 August 20X8—5,700 share options with an exercise price of $42 per share, were exercised. 1 October 20X8—A 5:1 stock split was completed. 1 February 20X9—The company repurchased 507,000 shares for $27 each. For the year ended 31 May 20X9, the company reported net earnings of $1,726,500.
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Basic EPS =
During the current year, Corporation A had 100,000 shares of common stock outstanding. On July 1, Corporation A issued a 4-for-1 stock split. Additionally, on September 2, A declared a dividend of $0.75 per common share, and the payment is expected to be made in January of the following year. If A had current assets of $2,000,000 and current liabilities of $1,200,000 before the declaration of the stock dividend, what is the percentage change in the current ratio as a result of the dividend declaration?
A.6% decrease.
B.20% decrease.
C.2% decrease.
D.15% decrease.
Chapter 20 Solutions
Intermediate Accounting
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Earnings per share (EPS), basic and diluted; Author: Bionic Turtle;https://www.youtube.com/watch?v=i2IJTpvZmH4;License: Standard Youtube License