On January 1, 2015, Wilke Corp. had 497000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account:

Feb 1 Issued 144,000 shares

March 1 Issued a 10% stock dividend

May 1 Acquired 109000 shares of treasury stock

June 1 Reissued a 3-for-1 stock split

Oct 1 Reissued 61100 shares of treasury stock

1. Determine the weighted-average number of shares outstanding as of December 31, 2015.

2. Assume that Wilke Corp. earned net income of $3,313,000 during 2015. In addition, it had 106,000 shares of 10%, $103 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2015. Compute earnings per share for 2015, using the weighted-average number of shares determined in part (a).

3. Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2015

4. Assume the same facts as in part (b), except that net income included an extraordinary gain of $884,000 and a loss from discontinued operations of $453,000. Both items are net of applicable income taxes. Compute earnings per share for 2015.

Answer rating: 100% (QA)

1 There were 497000 shares of common stock outstanding on January 1 2015 144000 shares were issued o... View the full answer