17. Silver Company reported the following capital structure on January 1, 2015: Ordinary share capital Preference share capital Shares issued and outstanding 200,000 50,000 On October 1, 2015, the entity issued a 10 % stock dividend on ordinary shares, and paid the annual cash dividend of P200,000 on preference shares. The preference shares are noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 31, 2015 was P1,920,000. What amount should be reported as basic earnings per share? c. 9.36 d. 7.82 a. 8.20 b. 8.72
17. Silver Company reported the following capital structure on January 1, 2015: Ordinary share capital Preference share capital Shares issued and outstanding 200,000 50,000 On October 1, 2015, the entity issued a 10 % stock dividend on ordinary shares, and paid the annual cash dividend of P200,000 on preference shares. The preference shares are noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 31, 2015 was P1,920,000. What amount should be reported as basic earnings per share? c. 9.36 d. 7.82 a. 8.20 b. 8.72
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:17. Silver Company reported the following capital structure on January 1, 2015:
Ordinary share capital
Preference share capital
Shares issued and outstanding
200,000
50,000
On October 1, 2015, the entity issued a 10 % stock dividend on ordinary shares, and paid the annual cash dividend of
P200,000 on preference shares. The preference shares are noncumulative, nonparticipating and nonconvertible. Net
income for the year ended December 31, 2015 was P1,920,000. What amount should be reported as basic earnings per
share?
a. 8.20
c. 9.36
d. 7.82
b. 8.72
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