A20-16 Basic EPS (LO 20-2) The Duckworth Ltd. 20X5 financial statements Include the following: Statement of comprehensive income Year ended 31 December 20X5 Earnings from continuing operations Discontinued operations (net of tax) Net earnings and comprehensive income $3,176,000 512,000 $3,688,000 Statement of financial position 31 December 20X5 Bonds payable, 6%, nonconvertible Preferred shares, no-par value, $1.06, nonconvertible, noncumulative, outstanding during year, 660,000 shares Common shares, no-par value: Outstanding 1 Jan., 35,600,000 shares Sold and issued 1 April, 3,320,000 shares Issued 50% stock dividend, 30 Sept., 19,460,000 share Retained earnings $7,280,000 1,560,000 $11,600,000 11,600,000 1,650,000 10,490,000 7,926,000 The company declared and paid preferred dividends of $36,000 during the year and had an effective tax rate of 30%. Required: 1. Compute basic EPS. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Basic EPS 2. Repeat requirement 1, assuming that the preferred shares are cumulative. (Do not round Intermediate calculations. Rou answer to 2 decimal places.) Basic EPS
A20-16 Basic EPS (LO 20-2) The Duckworth Ltd. 20X5 financial statements Include the following: Statement of comprehensive income Year ended 31 December 20X5 Earnings from continuing operations Discontinued operations (net of tax) Net earnings and comprehensive income $3,176,000 512,000 $3,688,000 Statement of financial position 31 December 20X5 Bonds payable, 6%, nonconvertible Preferred shares, no-par value, $1.06, nonconvertible, noncumulative, outstanding during year, 660,000 shares Common shares, no-par value: Outstanding 1 Jan., 35,600,000 shares Sold and issued 1 April, 3,320,000 shares Issued 50% stock dividend, 30 Sept., 19,460,000 share Retained earnings $7,280,000 1,560,000 $11,600,000 11,600,000 1,650,000 10,490,000 7,926,000 The company declared and paid preferred dividends of $36,000 during the year and had an effective tax rate of 30%. Required: 1. Compute basic EPS. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Basic EPS 2. Repeat requirement 1, assuming that the preferred shares are cumulative. (Do not round Intermediate calculations. Rou answer to 2 decimal places.) Basic EPS
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.1.1MBA
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning