Ask Question
BusinessBusiness
1 April, 09:39

Junkyard Arts, Inc., had earnings of $593,900 for the year.

The company had 50,000 shares of common stock outstanding during the year and issued 2,700 shares of $100 par value preferred stock.

The preferred stock has a dividend of $7 per share.

There were no transactions in either common or preferred stock during the year.

Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places.

+1
Answers (1)
  1. 1 April, 10:26
    0
    The basic EPS is $11.50

    Explanation:

    The basic earnings per share is the amount of net income that is earned per share of common equity or the amount of net income attributable to each share of common stock. The basic earnings per share (EPS) is calculated using the following formula,

    Basic EPS = (Net Income - Preferred stock dividend) / Weighted average number of common shares outstanding

    The preferred stock dividend for the period was = 7 * 2700 = 18900

    Basic EPS = (593900 - 18900) / 50000

    Basic EPS = $11.50
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Junkyard Arts, Inc., had earnings of $593,900 for the year. The company had 50,000 shares of common stock outstanding during the year and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of last year, Barrington Corporation purchased a piece of heavy equipment for $ 63,000. The equipment has a life of five years or 100,000 hours. The estimated residual value is $ 3,000.
Answers (1)
Clothing purchased land, paying $ 110 comma 000 cash and signing a $ 250 comma 000 note payable. In addition, Alpine paid delinquent property tax of $ 1 comma 100 , title insurance costing $ 1 comma 550 , and $ 5 comma 900 to level the land and
Answers (1)
The core competency of MotorCraft Inc. is its fuel-efficient engine found in its cars. These engines are developed and built in-house. The company realizes that there is a new market opportunity to diversify.
Answers (1)
When there few close substitutes available for a good, demand tends to be a. perfectly inelastic. b. relatively inelastic. c. perfectly elastic. d. relatively elastic?
Answers (1)
After preparing its financial statements for November, Unique Interiors notices that its income statement shows total expenses that are $200 too high and total revenues that are $300 too low.
Answers (2)
New Questions in Business
Bond Company sells inventory to its subsidiary, Esquivel Company, at a profit during 2020. If Bond uses the cost method to account for its equity investment in Esquivel, which of the following would be credited in the consolidated worksheet for 2021?
Answers (2)
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular.
Answers (1)
The APB partnership agreement specifies that partnership net income be allocated as follows: Partner A Partner P Partner B Salary allowance 30000 10000 40000 Interest on average capital balance 10% 10% 10% Remainder 40% 40% 20% Average capital
Answers (1)
The supply curve of reserves in an economy is horizontal when: A) the federal funds rate is greater than the seasonal credit discount rate. B) the federal funds rate is less than the secondary credit discount rate.
Answers (1)
Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?
Answers (1)
Home » Business » Junkyard Arts, Inc., had earnings of $593,900 for the year. The company had 50,000 shares of common stock outstanding during the year and issued 2,700 shares of $100 par value preferred stock. The preferred stock has a dividend of $7 per share.
Sign Up Forgot Password?