Problem 16-6 - (200,000 X 2 X 1.05 X 3/12) Number of shares...

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Problem 16-6 a) Event Dates Outstanding Shares Outstanding Beginning Balance including 5% stock dividend Jan. 1- April 1 3,150,000 Conversion of preferred stock Apr. 1 - July 1 3,360,000 Stock Split July 1 - Aug. 1 6,720,000 Issued shares for building Aug. 1 - Nov. 1 7,020,000 Purchase of Treasury Stock Nov. 1 - Dec. 31 6,996,000 Total number of common shares to compute basic earning per share b) Number of shares to compute basic earnings per share Convertible preferred stock--still outstanding (500,000 X 2 X 1.05) Convertible preferred stock- converted
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Unformatted text preview: (200,000 X 2 X 1.05 X 3/12) Number of shares to compute diluted earnings per share c) After tax net income Preferred Stock dividends Mar. 31 (700,000 X $0.75) June 30, Sept. 30 & Dec. 31 (500,000 X $0.75 X 3) Adjusted net income Restatement Fraction of Year Weighted Shares 2 3 out of 12 1,575,000 2 3 out of 12 1,680,000 1 out of 12 560,000 3 out of 12 1,755,000 2 out of 12 1,166,000 6,736,000 6,736,000 1,050,000 105,000 7,891,000 13,550,000 525,000 1,125,000 1,650,000 11,900,000...
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Problem 16-6 - (200,000 X 2 X 1.05 X 3/12) Number of shares...

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