Requirement 1. Compute AustinAustin​Company's earnings per share for 20182018. Assume the company paid the minimum preferred dividend during 20182018. Round to the nearest cent. Select the​ formula, then enter the amounts to calculate the​ company's earnings per share for 20182018. ​(Abbreviations used: Ave.​ = average, OS​ = outstanding, SE​ = stockholders'​ equity, shrs​ = shares.) ( - )/  =Earnings per share( - )/ =  Choose from any list or enter any number in the input fields and then click Check Answer. 2parts remaining  Clear AllCheck Answer     Data Table 20182017Income Statement—partial:  Net Income$6,660$20,000 Dec. 31, 2018Dec. 31, 2017Balance Sheet—partial:  Total Assets$200,000$265,000Paid-In Capital:  Preferred Stock—9%, $6 Par Value; 40,000 shares$24,000$24,000authorized, 4,000 shares issued and outstanding  Common Stock—$1 Par Value; 30,000 shares15,00015,000authorized; 15,000 shares issued and outstanding  Paid-In Capital in Excess of Par—Common26,00026,000Retained Earnings54,50050,000Total Stockholders' Equity$119,500$115,000

Question
Asked Feb 27, 2019
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Requirement 1. Compute
AustinAustin
Company's earnings per share for
20182018.
Assume the company paid the minimum preferred dividend during
20182018.
Round to the nearest cent.
 
Select the formula, then enter the amounts to calculate the company's earnings per share for
20182018.
(Abbreviations used: Ave. = average, OS = outstanding, SE = stockholders' equity, shrs = shares.)
 
(
 
-
 
)
/
 
 
=
Earnings per share
(
 
-
 
)
/
 
=
 
 
Choose from any list or enter any number in the input fields and then click Check Answer.
 
2
parts remaining
 
 
Clear All
Check Answer
 
 
 
 
 
Data Table
 
2018
2017
Income Statement—partial:
   
Net Income
$6,660
$20,000
 
Dec. 31, 2018
Dec. 31, 2017
Balance Sheet—partial:
   
Total Assets
$200,000
$265,000
Paid-In Capital:
 
 
Preferred Stock—9%, $6 Par Value; 40,000 shares
$24,000
$24,000
authorized, 4,000 shares issued and outstanding
 
 
Common Stock—$1 Par Value; 30,000 shares
15,000
15,000
authorized; 15,000 shares issued and outstanding
 
 
Paid-In Capital in Excess of Par—Common
26,000
26,000
Retained Earnings
54,500
50,000
Total Stockholders' Equity
$119,500
$115,000
check_circle

Expert Answer

Step 1

Compute the preferred dividend for the year 2018.

Therefore, preferred dividend for the year 2018 is $2,160

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Step 2

Compute the earnings per share:

 

therefore, earnings per s...

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