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EARNINGS PER TEFINEO Earnings per share example is a small preferred shareholders, Cheerful Merchandising Co. Net Income Preferred Dividends with company 10,000 outstanding and a net income of P100,000 per year. That means its earnings per share is P10. If the company distributes all of its income to shareholders, each share receives P10. The company decides to sell some of its shares as preferred stock, which pay dividends. Now the EPS lowers a little to reflect the amount they pay in dividends out of their net income. no Earnings per share outstanding common shares Number of Common Shares Outstanding Ostdycom CBA MINIATURES Statement of Retained Earnings For the Period December 31, 2015 Retained earnings Jan. 1, 2015 45,000 Net Income $ 122.200 Find: Less Dividends $ 17.000 $ 32.200 $ 49,200 Preferred stock *Please Show step by step solution Common stock $ 73.000 $ 118.000 Increase in retained earnings Retained earnings Dec. 31, 2015 Compute the EPS Stockholders' Equity Paid-in capital 9% Preferred stock, $100 par, 300 shares authorized and issued Common stock, $0.10 par, 10,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par - common Total paid-in capital Retained earnings Total stockholders' equity $ 30,000 200 49.800 80,000 28,000 $108,000

EARNINGS PER TEFINEO Earnings per share example is a small preferred shareholders, Cheerful Merchandising Co. Net Income Preferred Dividends with company 10,000 outstanding and a net income of P100,000 per year. That means its earnings per share is P10. If the company distributes all of its income to shareholders, each share receives P10. The company decides to sell some of its shares as preferred stock, which pay dividends. Now the EPS lowers a little to reflect the amount they pay in dividends out of their net income. no Earnings per share outstanding common shares Number of Common Shares Outstanding Ostdycom CBA MINIATURES Statement of Retained Earnings For the Period December 31, 2015 Retained earnings Jan. 1, 2015 45,000 Net Income $ 122.200 Find: Less Dividends $ 17.000 $ 32.200 $ 49,200 Preferred stock *Please Show step by step solution Common stock $ 73.000 $ 118.000 Increase in retained earnings Retained earnings Dec. 31, 2015 Compute the EPS Stockholders' Equity Paid-in capital 9% Preferred stock, $100 par, 300 shares authorized and issued Common stock, $0.10 par, 10,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par - common Total paid-in capital Retained earnings Total stockholders' equity $ 30,000 200 49.800 80,000 28,000 $108,000

FINANCIAL ACCOUNTING
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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EARNINGS PER SHARE DEFINED Earnings per share example Co. Merchandising with Cheerful is a small preferred shareholders, shares Net Income Preferred Dividends company 10,000 outstanding and a net income of P100,000 per year. That means its earnings per share is P10. If the company distributes all of its income to shareholders, each share receives P10. The company decides to sell some of its shares as preferred stock, which pay dividends. Now the EPS lowers a little to reflect the amount they pay in dividends out of their net income. no Earnings outstanding per share common Number of Common Shares Outstanding Ostudycom CBA MINIATURES Statement of Retained Earnings For the Period December 31, 2015 Retained earnings Jan. 1, 2015 $45.,000 Net Income $ 122.200 Find: Less Dividends Preferred stock 17.000 *Please Show step by step solution Common stock 32.200 S 49,200 $ 73.000 $ 118.000 Increase in retained earnings Retained earnings Dec. 31, 2015 Compute the EPS Stockholders' Equity Paid-in capital 9% Preferred stock, $100 par, 300 shares authorized and issued Common stock, SO.10 par, 10,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par - common Total paid-in capital Retained earnings Total stockholders' equity $ 30,000 200 49,800 80,000 28.000 $108.000
Transcribed Image Text:EARNINGS PER SHARE DEFINED Earnings per share example Co. Merchandising with Cheerful is a small preferred shareholders, shares Net Income Preferred Dividends company 10,000 outstanding and a net income of P100,000 per year. That means its earnings per share is P10. If the company distributes all of its income to shareholders, each share receives P10. The company decides to sell some of its shares as preferred stock, which pay dividends. Now the EPS lowers a little to reflect the amount they pay in dividends out of their net income. no Earnings outstanding per share common Number of Common Shares Outstanding Ostudycom CBA MINIATURES Statement of Retained Earnings For the Period December 31, 2015 Retained earnings Jan. 1, 2015 $45.,000 Net Income $ 122.200 Find: Less Dividends Preferred stock 17.000 *Please Show step by step solution Common stock 32.200 S 49,200 $ 73.000 $ 118.000 Increase in retained earnings Retained earnings Dec. 31, 2015 Compute the EPS Stockholders' Equity Paid-in capital 9% Preferred stock, $100 par, 300 shares authorized and issued Common stock, SO.10 par, 10,000 shares authorized, 2,000 shares issued and outstanding Paid-in capital in excess of par - common Total paid-in capital Retained earnings Total stockholders' equity $ 30,000 200 49,800 80,000 28.000 $108.000
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