Kelley Company reports $1,550,000 of net income for 2013 and declares $217,000 of cash dividends on its preferred stock for 2013. At the end of 2013, the company had 250,000 weighted-average shares of common stock.
What amount of net income is available to common stockholders for 2013?
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
A. 35,000
B. 70,000
C. 25,000
D. 30,000
Altar Loan Company’s balance sheet on December 31, 2014, reports the following:
| Preferred stock, $55 par value, 8%, 9,000 share issued | $495,000 |
| Common stock, $2 par, 1,400,000 share issued | $2,800,000 |
| Treasury stock, common, 150,000 shares at cost | $1,050,000 |
During 2014, Altar earned a net income of $6,000,000.
Compute Altar Loan’s earnings per common share (EPS) for 2014.
Burns Company reported $752.4 million in net income in 2013. On January 1, 2013, the company had 400 million shares of common stock outstanding. On March 1, 2013, 24 million new shares of common stock were sold for cash. On June 1, 2013, the company’s common stock split 2 for 1. On July 1, 2013, 8 million shares were reacquired as treasury stock.
Compute Burns’ basic earnings per share for the year ended December 31, 2013.
