Note 1. During the year, Metlock Inc. suffered a major loss from discontinued operations of $1,310,000 after applicable income tax reduction of $1,230,00 At the end of the current year, Metlock Inc. has outstanding 8,450,000 shares of $10 par common stock and 53,000 shares of 6% preferred. On April 1 of th Metlock Inc. issued 1,000,000 shares of common stock for $32 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. $2.55 Metlock Inc. Income Statement $
Note 1. During the year, Metlock Inc. suffered a major loss from discontinued operations of $1,310,000 after applicable income tax reduction of $1,230,00 At the end of the current year, Metlock Inc. has outstanding 8,450,000 shares of $10 par common stock and 53,000 shares of 6% preferred. On April 1 of th Metlock Inc. issued 1,000,000 shares of common stock for $32 per share to help finance the loss from discontinued operations. Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. $2.55 Metlock Inc. Income Statement $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A portion of the combined statement of income and retained earnings of Metlock Inc. for the current year follows.
Income before extraordinary item
$15,080,000
Loss from discontinued operations, net of applicable income tax (Note 1)
1,310,000
Net income
13,770,000
Retained earnings at the beginning of the year
82,660,000
96,430,000
Dividends declared:
On preferred stock-$6.00 per share
On common stock-$1.75 per share
Retained earnings at the end of the year
+
Note 1. During the year, Metlock Inc. suffered a major loss from discontinued operations of $1,310,000 after applicable income tax reduction of $1,230,000.
At the end of the current year, Metlock Inc. has outstanding 8,450,000 shares of $10 par common stock and 53,000 shares of 6% preferred. On April 1 of the current year,
Metlock Inc. issued 1,000,000 shares of common stock for $32 per share to help finance the loss from discontinued operations.
Compute the earnings per share on common stock for the current year as it should be reported to stockholders. (Round answer to 2 decimal places, e.g. $2.55.)
Metlock Inc.
Income Statement
$
$318,000
14,980,000
+ $
15,298,000
$81,132,000
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