Calculating Basic Earnings per Share XYZ Company has net income of $580,000 before an extraordinary item of $240,000 (aftertax). The company also pays a preferred dividend of $1 per share on 100,000 shares of preferred stock. The company made the following changes to its common shares during the year. The increase in the number of shares on July 1 was due toa 3-for-1 stock split. Date 1-Jan 1-May 1-Jul 31-Dec Beginning Balance (Shares) 180,000 150,000 450,000 (Repurch) Stock (Shares) (30,000) Issue Stock (Shares) 300,000 000 Ending Balance (Shares) b) What is the company's basic earnings per share? 180,000 150,000 450,000 3-for-1 split 500,000 a) What is the weighted average number of XYZ shares outstanding for the year?

Calculating Basic Earnings per Share XYZ Company has net income of $580,000 before an extraordinary item of $240,000 (aftertax). The company also pays a preferred dividend of $1 per share on 100,000 shares of preferred stock. The company made the following changes to its common shares during the year. The increase in the number of shares on July 1 was due toa 3-for-1 stock split. Date 1-Jan 1-May 1-Jul 31-Dec Beginning Balance (Shares) 180,000 150,000 450,000 (Repurch) Stock (Shares) (30,000) Issue Stock (Shares) 300,000 000 Ending Balance (Shares) b) What is the company's basic earnings per share? 180,000 150,000 450,000 3-for-1 split 500,000 a) What is the weighted average number of XYZ shares outstanding for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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