2:33 PM a edugen.wileyplus.com Pad? * 52%-, Home Read, Study & Practice Assignme

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2:33 PM a edugen.wileyplus.com Pad? * 52%-, Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment> Open Assignment MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Problem 11-8A W Chapter Munchies Inc.'s shareholders' equity accounts were as follows at the beginning of the current fiscal year, August 1, 2017: 3A (Par $1 noncumulative preferred shares (103,000 shares issued) Common shares (337,000 shares issued) Retained earnings Total shareholders' equity $2,575,000 3,370,000 2,420,000 $8,365,000 ar Level Submission Problem 11-8A During the year, the following selected transactions occurred Review Score Review Results by Study Obiective Oct. Reacquired 22,800 common shares for $19 per share Dec. 1 Issued 54,600 common shares for $24 per share Feb. 1 Issued 9,600 common shares for $25 per share June 20 Declared the annual preferred cash dividend to shareholders of record on July 10, payable on July 31 July 31 Net income for the year ended July 31, 2018, was $1,212,000 Calculate the weighted average number of common shares for the year Weighted Average Number of Shares LINK TO TEXT Calculate the basic earnings per share. (Round answer to 2 decimal place e.g. 5.25.) Basic Earnings per Share

Explanation / Answer

1. Weighted average numbers of comman share. Period Months Comman stock transaction Total August 1 to September 30 2 337000 337000 October 1 to November 30 2 337000 -22800 314200 December 1 to January 31 2 337000 -22800 54600 368800 February 1 to July 31 6 337000 -22800 54600 9600 378400 Weighted average numbers of comman share          3,59,200 (337000*2/12)+(314200*2/12)+368800*2/12)+378400*6/12 2. Basic EPS Retained earnings on July 31          12,12,000 Less :Preference dividend            1,03,000 Income attributable to Comman share holders A          11,09,000 Weighted average numbers of comman share B            3,59,200 EPS (A/B) 3.09 3. Basic EPS, if preference dividend not declared Retained earnings on July 31 A          12,12,000 Weighted average numbers of comman share B            3,59,200 EPS (A/B) 3.37

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