Turk Company had net income of $1,792,000 for the year ended December 31, 2020. The Company has 25,000 shares of $100 par value, 10% preferred stock outstanding. The preferred stock is cumulative, but not convertible. On January 1, 2020 Turk had 275,000 shares of common stock outstanding. On April 1, the Company sold 80,000 additional shares of common. The Turk Company board of directors issued a 3 for 1 stock split on June 1, and on October 1 the board purchased 165,000 shares of its common stock on the open market. Instructions: Compute earnings per share for 2020.
Turk Company had net income of $1,792,000 for the year ended December 31,
2020. The Company has 25,000 shares of $100 par value, 10%
outstanding. The preferred stock is cumulative, but not convertible. On January 1,
2020 Turk had 275,000 shares of common stock outstanding. On April 1, the
Company sold 80,000 additional shares of common. The Turk Company board of
directors issued a 3 for 1 stock split on June 1, and on October 1 the board
purchased 165,000 shares of its common stock on the open market.
Instructions: Compute earnings per share for 2020.
EARNING PER SHARE
EPS is the monetary value of earning per outstanding Share of Common stock for a Company.
Earning per share is Computed by dividing average number of outstanding Share of Common Stock From Earning for Common Stock.
Earning per share is Computed :—
EPS = (Net Income - Preferred Stock Dividend) ÷ Average No. of Outstanding Share of Common Stock
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