2. Having not paid any dividends for the previous two years, Weyburn General Store Corporation's board declared a $172,050 cash dividend at the year-end December 31, 2022. Cumulative preferred shares are entitled to a $3 dividend, and there are 3,850 shares issued and outstanding. The company had 7,600 common shares outstanding at the start of 2022. On March 1, the company retired 3,000 common shares. On June 1, they sold an additional 2,000 shares., and on October 1, the company's board declared a 3-for-1 stock split. Assume the company has sufficient Retained Earnings to pay out all dividends. Weyburn General Store Corporation has net income for the year of $270,000. REQUIRED: Calculate the dividends paid to both common and preferred shareholders. Calculate the weighted number of common shares outstanding and the Earnings Per Share for 2022.

2. Having not paid any dividends for the previous two years, Weyburn General Store Corporation's board declared a $172,050 cash dividend at the year-end December 31, 2022. Cumulative preferred shares are entitled to a $3 dividend, and there are 3,850 shares issued and outstanding. The company had 7,600 common shares outstanding at the start of 2022. On March 1, the company retired 3,000 common shares. On June 1, they sold an additional 2,000 shares., and on October 1, the company's board declared a 3-for-1 stock split. Assume the company has sufficient Retained Earnings to pay out all dividends. Weyburn General Store Corporation has net income for the year of $270,000. REQUIRED: Calculate the dividends paid to both common and preferred shareholders. Calculate the weighted number of common shares outstanding and the Earnings Per Share for 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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