Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of outstanding common stock. On April 1, 16,000 additional common shares were issued, and another 32,000 common shares were issued on August 1. The company had net income for the year of $570,000.

Required:
Calculate the earnings per share of common stock.

Sagot :

Answer:

2.53

Explanation:

earnings per shares=net income / weighted average earning per shares

begining common stock =200,000 shares

April 1: 16000*9months/12months=12,000 shares

August 1: 32000*5months/12months=13,333shares

weighted average earning per shares=200,000shares+12000shares+13333shares=225333shares

earnings per shares=570,000(net income)/225333shares=2.53

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.