Cookie Company had 3.0 million shares of common stock outstanding all through 2020. On April 1, 2021, an additional 110,000 shares were sold and issued. On September 30, 2021, Cookie declared a 2-for-1 stock split. Net income in
Cookie Company had 3.0 million shares of common stock outstanding all through 2020. On April 1, 2021, an additional 110,000 shares were sold and issued. On September 30, 2021, Cookie declared a 2-for-1 stock split. Net income in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cookie Company had 3.0 million shares of common stock outstanding all through 2020. On April 1, 2021, an additional 110,000 shares were sold and issued. On September 30, 2021, Cookie declared a 2-for-1 stock split. Net income in 2021 and 2020 was $20 million and $13.0 million, respectively. In the 2021 comparative financial statements, EPS (rounded) would be reported as follows:
| 2021 EPS | 2020 EPS | ||||||
| a. | $ | 3.24 | $ | 2.17 | |||
| b. | $ | 3.24 | $ | 4.34 | |||
| c. | $ | 6.48 | $ | 2.17 | |||
| d. | $ | 6.48 | $ | 4.34 | |||
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