Thomas Corporation presented the following data : Net Income: $2,500,000 Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1 preferred share. No dividends were declared - $5,000,000 Common Stock: Shares outstanding on 1/1: 750,000 Issued for cash on 4/1: 300,000 2-for-1 stock split on 7/1 Acquired treasury stock for cash on 10/1: 150,000 (Stock split also applies to the convertible preferred stock conversion rate) Determine weighted shares outstanding for diluted EPS? Determine diluted EPS (round to the nearest cent)?
Thomas Corporation presented the following data : Net Income: $2,500,000 Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1 preferred share. No dividends were declared - $5,000,000 Common Stock: Shares outstanding on 1/1: 750,000 Issued for cash on 4/1: 300,000 2-for-1 stock split on 7/1 Acquired treasury stock for cash on 10/1: 150,000 (Stock split also applies to the convertible preferred stock conversion rate) Determine weighted shares outstanding for diluted EPS? Determine diluted EPS (round to the nearest cent)?
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 7SPB: STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following...
Related questions
Question
Thomas Corporation presented the following data :
Net Income: $2,500,000
Preferred stock (1/1): 50,000 shares outstanding, $100 par, 8% noncumulative, convertible to common stock at 4 common shares to 1
Common Stock:
Shares outstanding on 1/1: 750,000
Issued for cash on 4/1: 300,000
2-for-1 stock split on 7/1
Acquired
(Stock split also applies to the convertible preferred stock conversion rate)
Determine weighted shares outstanding for diluted EPS?
Determine diluted EPS (round to the nearest cent)?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning