A portion of the combined statement of income and retained earnings of Crane Inc. for the current year follows. Income from continuing operations Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year $294,000 14,660,000 $15,011,550 1,330,400 13,681,150 84,590,000 98,271,150 14,954,000 $83,317,150 Note 1. During the year, Crane Inc. suffered a major loss from discontinued operations of $1,330,400 after applicable income tax reduction of $1,190,000. At the end of the current year, Crane Inc. has outstanding 8,560,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Crane Inc. issued 980,000 shares of common stock for $34 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. 2.55.)
A portion of the combined statement of income and retained earnings of Crane Inc. for the current year follows. Income from continuing operations Loss from discontinued operations, net of applicable income tax (Note 1) Net income Retained earnings at the beginning of the year Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year $294,000 14,660,000 $15,011,550 1,330,400 13,681,150 84,590,000 98,271,150 14,954,000 $83,317,150 Note 1. During the year, Crane Inc. suffered a major loss from discontinued operations of $1,330,400 after applicable income tax reduction of $1,190,000. At the end of the current year, Crane Inc. has outstanding 8,560,000 shares of $10 par common stock and 49,000 shares of 6% preferred. On April 1 of the current year, Crane Inc. issued 980,000 shares of common stock for $34 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. 2.55.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 23E
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