A portion of the combined statement of income and retained earnings of Cullumber Inc. for the current year follows. Income from continuing operations $15,080,800 Loss from discontinued operations, net of applicable income tax (Note 1) 1,344,800 Net income 13,736,000 Retained earnings at the beginning of the year 83,620,000 97,356,000 Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year $288,000 14,620,000 14,908,000 $82,448,000 Note 1. During the year, Cullumber Inc. suffered a major loss from discontinued operations of $1,344,800 after aplicable income tax reduction of $1,190,000. At the end of the current year, Cullumber Inc. has outstanding 8,660,000 shares of $10 par common stock and 48,000 shares of 6% preferred. On April 1 of the current year, Cullumber Inc. issued 1,020,000 shares of common stock for $30 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.) CULLUMBER INC. Income Statement For the Year Ended December 31 Income from Continuing Operations Loss from Discontinued Operations Net Income/(Loss) 15080800 -1344800 13736000
A portion of the combined statement of income and retained earnings of Cullumber Inc. for the current year follows. Income from continuing operations $15,080,800 Loss from discontinued operations, net of applicable income tax (Note 1) 1,344,800 Net income 13,736,000 Retained earnings at the beginning of the year 83,620,000 97,356,000 Dividends declared: On preferred stock-$6.00 per share On common stock-$1.75 per share Retained earnings at the end of the year $288,000 14,620,000 14,908,000 $82,448,000 Note 1. During the year, Cullumber Inc. suffered a major loss from discontinued operations of $1,344,800 after aplicable income tax reduction of $1,190,000. At the end of the current year, Cullumber Inc. has outstanding 8,660,000 shares of $10 par common stock and 48,000 shares of 6% preferred. On April 1 of the current year, Cullumber Inc. issued 1,020,000 shares of common stock for $30 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.) CULLUMBER INC. Income Statement For the Year Ended December 31 Income from Continuing Operations Loss from Discontinued Operations Net Income/(Loss) 15080800 -1344800 13736000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 182.
Transcribed Image Text:A portion of the combined statement of income and retained earnings of Cullumber Inc. for the current year follows.
Income from continuing operations
$15,080,800
Loss from discontinued operations, net of applicable income tax (Note 1)
1,344,800
Net income
13,736,000
Retained earnings at the beginning of the year
83,620,000
97,356,000
Dividends declared:
On preferred stock-$6.00 per share
On common stock-$1.75 per share
Retained earnings at the end of the year
$288,000
14,620,000
14,908,000
$82,448,000
Note 1. During the year, Cullumber Inc. suffered a major loss from discontinued operations of $1,344,800 after aplicable income tax
reduction of $1,190,000.
At the end of the current year, Cullumber Inc. has outstanding 8,660,000 shares of $10 par common stock and 48,000 shares of 6%
preferred. On April 1 of the current year, Cullumber Inc. issued 1,020,000 shares of common stock for $30 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.)
CULLUMBER INC.
Income Statement
For the Year Ended December 31
Income from Continuing Operations
Loss from Discontinued Operations
Net Income/(Loss)
15080800
-1344800
13736000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education