In 2019 Manning Company has $1,000,000 in assets and $1,000,000 in stockholders' equity, with 50,000 shares outstanding the entire year. In the past year it had net income of $75,000. On January 1, 2020, it issued $300,000 in debt at 5% and immediately repurchased 25,000 shares for $300,000. Management expected that, had it not issued the debt, it would again have had net income of $75,000. Part 1 Your answer is correct. Determine the Company's net income and earnings per share for 2019 and 2020. (Ignore taxes in your computations.) Net income 2019 $ Earnings per share (Round 2 decimal places, e.g. 1.25.) $ 75000 1.50 2020 $ $ 60000 2.40

In 2019 Manning Company has $1,000,000 in assets and $1,000,000 in stockholders' equity, with 50,000 shares outstanding the entire year. In the past year it had net income of $75,000. On January 1, 2020, it issued $300,000 in debt at 5% and immediately repurchased 25,000 shares for $300,000. Management expected that, had it not issued the debt, it would again have had net income of $75,000. Part 1 Your answer is correct. Determine the Company's net income and earnings per share for 2019 and 2020. (Ignore taxes in your computations.) Net income 2019 $ Earnings per share (Round 2 decimal places, e.g. 1.25.) $ 75000 1.50 2020 $ $ 60000 2.40

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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