wiley_423_week_2.xlsx - Question 1 1 On January 1 2012...

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Question 1 Bailey Industries Income Statement For the year ended December 31, 2012 Income before extra ordinary item 0.29 Extra ordinary gain per share 0.24 Net Income / Loss per share 0.53 Working $318,000 Income taxes 133,560 Income before extraordinary item 184,440 87,000 Net income $271,440 Dates Fraction Weighted Outstanding of Year Shares January 1–April 1 283,200 0.25 70,800 April 1–July 1 293,600 0.25 73,400 July 1–Oct. 1 424,400 0.25 106,100 Oct. 1–Dec. 31 453,200 0.25 113,300 363,600 1.) On January 1, 2012, Bailey Industries had stock outstanding as follows. 6% Cumulative preferred stock, $1,297,100 Common stock, $11 par value, issued and outstanding 283,200 shares 3,115,200 To acquire authorized the issuance of an additional 270,000 common shares. The acquisitions took place as shown April 1, 2012 110,400 Company B July 1, 2012 130,800 Company C October 1, 2012 28,800 On May 14, 201 gain on the expropriation of investments originally purchased in 2000. On December 31, 2012, Bailey reco of the gain. Assuming a 42% tax rate, compute the earnings per share data that should appear on the fina 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.) B December 31, 2012 Income before extraordinary item $ Extraordinary Gain per shar Income before income tax and extraordinary items Extraordinary gain, net of applicable income tax of Shares Outstanding Weighted-average number of shares outstanding
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Income to common stock holder Net income 318,000 Income tax (133,560) preferred dividends (77,826) income available to common stockholder 106,614
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