At January 1, 2020, Wildhorse Company's outstanding shares included the following. 300,000 shares of $50 par value, 7% cumulative preferred stock 959,000 shares of $1 par value common stock Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020. On April 1, 2020, 476,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 102,000 shares of common stock were purchased for $20 per share and held as treasury stock. Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $
At January 1, 2020, Wildhorse Company's outstanding shares included the following. 300,000 shares of $50 par value, 7% cumulative preferred stock 959,000 shares of $1 par value common stock Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15, 2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common shares. There were no dividends in arrears prior to 2020. On April 1, 2020, 476,000 shares of common stock were sold for $10 per share, and on October 1, 2020, 102,000 shares of common stock were purchased for $20 per share and held as treasury stock. Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At January 1, 2020, Wildhorse Company's outstanding shares included the following.
300,000 shares of $50 par value, 7% cumulative preferred stock
959,000 shares of $1 par value common stock
Net income for 2020 was $2,565,000. No cash dividends were declared or paid during 2020. On February 15,
2021, however, all preferred dividends in arrears were paid, together with a 5% stock dividend on common
shares. There were no dividends in arrears prior to 2020.
On April 1, 2020, 476,000 shares of common stock were sold for $10 per share, and on October 1,
2020, 102,000 shares of common stock were purchased for $20 per share and held as treasury stock.
Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March
2021. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings per share
$
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