Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold;stock options [LO19-5, 19-6, 19-7, 19-8]On December 31, 2023, Berclair Incorporated had 320 million shares of common stock and 5 million shares of 9%, $100 par valuecumulative preferred stock issued and outstanding.• On March 1, 2024, Berclair purchased 72 million shares of its common stock as treasury stock.• Berclair issued a 5% common stock dividend on July 1, 2024.Four million treasury shares were sold on October 1.• Net income for the year ended December 31, 2024, was $450 million.• Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2019.• The options were exercisable as of September 13, 2023, for 30 million common shares at an exercise price of $56 per share.During 2024, the market price of the common shares averaged $70 per share..·Required:Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options andconversion of convertible securities have been adjusted for any stock split or stock dividend.)Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).BasicDilutedNumerator+Denominator=Earnings per Share

It represents the portion of a company's profit allocated to each outstanding share of common stock.…

Answered: On December 31, 2023, Berclair…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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On December 31, 2023, Berclair Incorporated had 540 million shares of common stock and 21 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2024, Berclair purchased 24 million shares of its common stock as treasury stock. • Berclair issued a 5% common stock dividend on July 1, 2024. • Four million treasury shares were sold on October 1. • Net income for the year ended December 31, 2024, was $1,050 million. • Also outstanding at December 31 were 84 million incentive stock options granted to key executives on September 13, 2019. • The options were exercisable as of September 13, 2023, for 84 million common shares at an exercise price of $75 per share. • During 2024, the market price of the common shares averaged $100 per share. • The options were exercised on September 1, 2024. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2024. (Shares for stock options and conversion of convertible…
On December 31, 2023, Dow Steel Corporation had 640,000 shares of common stock and 304,000 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, 2024. • On February 28, 2024, 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, 2024, was $2,300,000. • The income tax rate is 25%. Also, as a part of a 2023 agreement for the acquisition of Merrill Cable Company, another 27,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2025, if Merrill's 2025 net income is at least $540,000. ● In 2024, Merrill's net income was $670,000. As part of an incentive compensation plan, Dow granted incentive stock options to division…
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19.4XC. Chester keeps a cash book with bank columns and discount columns only. All petty cash paid out is entered in a petty cash book. All payments above $50 are by cheque, below that figure by cash. This is the information for August 2007. 2007 Aug 1 Bank balance Petty cash balance 2,745 29 Aug 2 Reimbursement to petty cashier by cheque which is cashed, restoring cash float 271 Aug 3 Petrol bought Aug 5 Bank charges Aug 6 Cheques received duly banked: 19 77 T. Grant (after cash discount $27) C. Riley (after cash discount $20) 513 380 Aug 9 Postage Aug 11 Motor repairs Aug 13 Motor spares Aug 13 Paid the following: 48 247 33 F. Gordon (after cash discount $ 30) P Clarke (after cash discount $16) 1,170 624 Aug 15 Envelopes bought Aug 18 Drew cheque for wages Aug 21 Received cheque from J. Franks to settle a debt of $2,947 Aug 22 Petrol bought Aug 24 Postage Aug 26 Copying paper bought Aug 27 Paid V. Thomas to settle his account Aug 28 Cleaning materials Aug 29 Dog licence for guard dog…
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1. Rahman Company began 2022 with 690,000 shares of common stock outstanding. On September 1, 2022 there was a 2 for 1 stock split. On November 1, 2022, the company repurchased 270,000 shares of treasury stock. 2. Net Income for 2022 was $18,990,000 and the corporate tax rate is 25%. 3. 4% convertible preferred stock was outstanding all year. Each share has a par value of $100 and the total par value is $18,000,000. Each preferred share is convertible into 3 shares of common stock. 4. In 2015, 8% bonds (maturing in 10 years) were issued at 98. The discount is being amortized on a straight-line basis. The bonds have a $1,000 par value each for a total par value of $12,000,000. Each bond is convertible into 2 shares of common stock. 5. On March 1, 2022, Rahman had a second issuance of convertible bonds at their stated rate of 9%. Each $1,000 bond is convertible into 6 shares of common stock. The total par is $15,000,000. 6.…
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On December 31, 2023, Dow Steel Corporation had 780,000 shares of common stock and 48,000 shares of 10%, noncumulative, nonconvertible preferred stock Issued and outstanding. • Dow Issued a 5% common stock dividend on May 15 and paid cash dividends of $580,000 and $87,000 to common and preferred shareholders, respectively, on December 15, 2024. • On February 28, 2024, Dow sold 68,000 common shares. • In keeping with its long-term share repurchase plan, 5,000 shares were retired on July 1. • Dow's net Income for the year ended December 31, 2024, was $3,000,000. The Income tax rate is 25%. Required: Compute Dow's earnings per share for the year ended December 31, 2024. Note: Do not round intermediate calculations. Except for per share amounts, enter your answers in thousands (1.e., 10,000 should be entered as 10). Round "Earnings per share" answer to 2 decimal places. Numerator Denominator Earnings per share
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