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Determine the weighted average number of shares outstanding as of December 31, 2012.

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On January 1, 2012, Vermont Maple Corp. had 2,650,000 shares of common stock issued and outstanding.;During 2012, it had the following transactions that affected the common stock account.;Mar. 1 Issued 250,000 shares in exchange for land;Apr. 1 Acquired 200,000 shares of treasury stock;July 1 Issued a 20% stock dividend;Sept. 1 Reissued 240,000 shares of treasury stock;(adjusted for 20% stock dividend);Oct. 1 Issued a 3-for-1 stock split;Instructions;(a) Determine the weighted average number of shares outstanding as of December 31, 2012.;(b) Assume that Vermont Maple Corp. earned net income of $8,532,000 during 2012. In addition, it had 200,000;shares of 9%, $100 par value nonconvertible, cumulative preferred stock outstanding for the entire year.;Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in;2012. Compute earnings per share for 2012, using the weighted average number of shares determined in part;(a).;(c) Assume the same facts as in part (b), except that the preferred stock was noncumulative. Compute;earnings per share for 2012.;(d) Assume the same facts as in part (b), except that net income included a loss from discontinued;operations of $500,000, net of $300,000 in income taxes. Compute earnings per share for 2012.

 

Paper#20885 | Written in 18-Jul-2015

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