ch19-2 EPS Saved Help Save & Exit Submit Check my work 4 Hardaway Fixtures\' bal

Question

ch19-2 EPS Saved Help Save & Exit Submit Check my work 4 Hardaway Fixtures' balance sheet at December 31, 2017, included the following: Shares issued and outstanding 6 nts Conmon stock, $1 par Nonconver tible preferred stock, $50 par 960,000 20,000 eBook On July 21, 2018, Hardaway issued a 25% stock dividend on its common stock. On December 12 it paid $45,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2018, was $3,600,000. Print eferencesRequired: Compute Hardaway's earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.) Pre 4 of 6 Next>

Explanation / Answer

Shares Outstanding = 960,000 + (25% * 960,000)

= 960,000 + 240,000 = 1,200,000

Earning Per Share (EPS) = (Net Income - Preferred dividend) / Weighted average shares outstanding

= (3,600,000 - 45000) / 1,200,000

= 3,555,000 / 1,200,000 = 2.96 Ans.

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