Question Details

Compute earnings per share of common stock 


Ex. 1
Santos Corporation gathered the following information for the fiscal year ended December 31, 2014:
	Sales	$1,500,000
	Operating expenses	160,000
	Cost of goods sold	960,000
	Loss on disposal of equipment	40,000

Santos Corporation is subject to a 30% income tax rate.

Instructions
Prepare a partial income statement, beginning with income from operations.


Ex. 2
At December 31, 2014, Florrict Company has $500,000 of $100 par value, 6%, cumulative preferred stock outstanding and $2,000,000 of $10 par value common stock issued. Florrict- net income for the year is $410,000.

Instructions
Compute earnings per share of common stock for 2014 under the following independent situations. (Round to two decimals.)
(a)	The dividend to preferred stockholders was declared, and there has been no change in the number of shares of common stock outstanding during the year.
(b)	The dividend to preferred stockholders was not declared, and 10,000 shares of common treasury stock were held throughout the year. The preferred stock is cumulative.

Ex. 3
The following information is available for Hildebrand Corporation:

Dividends paid to common stockholders	$  45,000
Dividends paid to preferred stockholders	20,000
Net income	295,000
Weighted average common shares outstanding	100,000

Instructions
Compute the earnings per share of common stock.




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