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Homework Quiz&acirc;€”10 S11 Section 1

# Homework Quiz&acirc;€”10 S11 Section 1 - nearest...

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S11 Section 1 Homework Quiz— 10 Name Section ABC Company had 1,008,000 issued and outstanding shares of \$5 par common stock at 1/1/10. ABC also had 30,000 shares of \$100 par, 6% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Issued 87,600 shares of \$5 par common stock on March 1. b. Purchased 21,000 shares of treasury stock on May 1. c. Split the common stock 3 for 1 on June 1. d. Borrowed \$1,200,000 using 6% Bonds on September 1. The bonds pay 3% interest semiannually on 3/1 and 9/1. e. Sold 51,600 treasury shares on November 1. Required : In the table below, calculate 2010 Weighted Average Shares Outstanding. Dates Outstanding Shares Outstanding Restatement Fraction of the Year Weighted Shares Outstanding 1/1 to 2/28 1,008,000 3 2/12 504,000 3/1 to 4/30 1,095,600 3 2/12 547,800 5/1 to 5/31 1,074,600 3 1/12 268,650 6/1 to 10/31 3,223,800 5/12 1,343,250 11/1 to 12/31 3,275,400 2/12 545,900 Weighted Average 3,209,600 Required: If Net Income was \$4,160,000, calculate 2010 Basic Earnings Per Share (rounded to the

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Unformatted text preview: nearest cent). Preferred dividends = (6% x \$100 x 30,000) = 180,000 Basic EPS = (\$4,160,000 - \$180,000)/3,209,600 = \$1.24 per share 1 S11 Section 1 Homework Quiz— 10 Name Section ABC Company had 1,008,000 issued and outstanding shares of \$5 par common stock at 1/1/10. ABC also had 30,000 shares of \$100 par, 6% preferred stock issued and outstanding at 1/1/10. During 2010 ABC did the following: a. Issued 87,600 shares of \$5 par common stock on March 1. b. Purchased 21,000 shares of treasury stock on May 1. c. Split the common stock 3 for 1 on June 1. d. Borrowed \$1,200,000 using 6% Bonds on September 1. The bonds pay 3% interest semiannually on 3/1 and 9/1. e. Sold 51,600 treasury shares on November 1. Required : In the table below, calculate 2010 Weighted Average Shares Outstanding. Required: If Net Income was \$4,160,000, calculate 2010 Basic Earnings Per Share (rounded to the nearest cent). 2...
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