Computing EPS: Simple Capital StructureAt the end of 2020, the records of Block Corporation reflected the following.Common stock, $5 par, authorized 500,000 shares Outstanding January 1, 2020, 400,000 shares $2,000,000Sold and issued April 1, 2020, 2,000 shares 10,000Issued 5% stock dividend, September 30, 2020; 20,100 shares 100,500Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 50,000 shares Outstanding during year, 20,000 shares 200,000Paid-in capital in excess of par, common stock 180,000Paid-in capital in excess of par, preferred stock 100,000Retained earnings (after the effects of current preferred dividends declared during 2020) 640,000Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020 1,000,000Net income 164,000Income tax rate, 25% a. Compute the required EPS amount(s) Net Income Available toCommon StockholdersWeighted Avg. CommonShares OutstandingPerShareBasic EPS AnswerAnswerAnswer Net Income Available toCommon StockholdersWeighted Avg. CommonShares OutstandingPerShareDiluted EPS AnswerAnswer Answer

By dividing a company's revenue or profit by the total number of outstanding shares, basic EPS is…

Answered: At the end of 2020, the records of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Computing EPS: Simple Capital Structure

At the end of 2020, the records of Block Corporation reflected the following.

Common stock, $5 par, authorized 500,000 shares
Outstanding January 1, 2020, 400,000 shares		$2,000,000
Sold and issued April 1, 2020, 2,000 shares		10,000
Issued 5% stock dividend, September 30, 2020; 20,100 shares		100,500
Preferred stock, 6%, $10 par, nonconvertible, noncumulative, authorized 50,000 shares
Outstanding during year, 20,000 shares		200,000
Paid-in capital in excess of par, common stock		180,000
Paid-in capital in excess of par, preferred stock		100,000
Retained earnings (after the effects of current preferred dividends declared during 2020)		640,000
Bonds payable, 6.5%, nonconvertible, issued at par January 1, 2020		1,000,000
Net income		164,000
Income tax rate, 25%

a. Compute the required EPS amount(s)

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Basic EPS	Answer	Answer	Answer

	Net Income Available to Common Stockholders	Weighted Avg. Common Shares Outstanding	Per Share
Diluted EPS	Answer	Answer	Answer

Expert Solution

Step by step

Solved in 3 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions