On January 1, 2020, Vaughn Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,200 shares $920,000 Common stock, $10 par value, issued and issued and outstanding 205,000 shares To acquire the net assets of three smaller companies, Vaughn authorized the issuance of an additional 162,000 common shares. The acquisition took place as shown below. Company A April 1, 2020. 51,600 shares issued Company B July 1, 2020. 80,400 shares issued Company C October 1, 2020. 30,000 shares issued On May 14, 2020, Vaughn realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Vaughn recorded income of $303,600 from continuing operations (after tax). Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Vaughn Industries as of December 31, 2020 (Round answer to 2 decimal places)
On January 1, 2020, Vaughn Industries had stock outstanding as follows.
6% Cumulative
Common stock, $10 par value, issued and issued and outstanding 205,000 shares
To acquire the net assets of three smaller companies, Vaughn authorized the issuance of an additional 162,000 common shares. The acquisition took place as shown below.
Company A April 1, 2020. 51,600 shares issued
Company B July 1, 2020. 80,400 shares issued
Company C October 1, 2020. 30,000 shares issued
On May 14, 2020, Vaughn realized a $87,600 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Vaughn recorded income of $303,600 from continuing operations (after tax).
Assuming a 20% tax rate, compute the earnings per share data that should appear on the financial statements of Vaughn Industries as of December 31, 2020 (Round answer to 2 decimal places)
Meaning of Earnings-per-share(EPS):-
Earnings-per-share is the ratio of the earnings available to common stockholders divided by the number of outstanding common stockholders. Earnings available to common stockholders is the net income post the dividend accumulation on the preferred stock.
EPS = Net Income available to Common stockholders / Weighted Number of Outstanding Shares
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