On December 31, 2020, Witherspoon Services had 800,000 shares of common stock and 200,000 shares of 5.5%, noncumulative, nonconvertible $10 par preferred stock issued and outstanding. On March 2, 2021, Witherspoon sold 120,000 common shares. In keeping with its long-term share repurchase plan, 30,000 shares were retired on August 31. Witherspoon distributed a 10% common stock dividend on June 3. Witherspoon's net income for the year ended December 31, 2019, was $600,000. The company paid cash dividends of $110,000 to preferred shareholders on December 20, 2021. The income tax rate is 25%. Required: Compute Witherspoon's earnings per share for the year ended December 31, 2021. (Round your answer to 2 decimal places.) Earnings per share

On December 31, 2020, Witherspoon Services had 800,000 shares of common stock and 200,000 shares of 5.5%, noncumulative, nonconvertible $10 par preferred stock issued and outstanding. On March 2, 2021, Witherspoon sold 120,000 common shares. In keeping with its long-term share repurchase plan, 30,000 shares were retired on August 31. Witherspoon distributed a 10% common stock dividend on June 3. Witherspoon's net income for the year ended December 31, 2019, was $600,000. The company paid cash dividends of $110,000 to preferred shareholders on December 20, 2021. The income tax rate is 25%. Required: Compute Witherspoon's earnings per share for the year ended December 31, 2021. (Round your answer to 2 decimal places.) Earnings per share

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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On December 31, 2020, Dow Steel Corporation had 640,000 shares of common stock and 34,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $440,000 and $73,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 57,000 common shares. In keeping with its long-term share repurchase plan, 6, 000 shares were retired on July 1. Dow’s net income for the year ended December 31, 2021, was $2,300,000. The income tax rate is 25%. Required: Compute Dow’s earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round “Earnings per share” answer to 2 decimal places.) Number / Denominator = Earnings per share ________ / _____________ = _______________
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