Question

Weighted Average Shares At the beginning of 2014, Hardin Company had 220,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock:
Required:
Determine the following:
1. Weighted average number of shares outstanding for computing the current earnings per share
2. Number of common shares outstanding at December 31, 2014
Determine the weighted average number of shares outstanding for computing the current earnings per share earnings per Share The 2015 balance sheet for Guthrie Corporation revealed the following information:
• Common stock, $ 10 par, 50,000 shares issued and outstanding
• Preferred stock, $100 par, 6%, cumulative stock, 1,000 shares issued and outstanding
During 2016, Guthrie reported net income of $225,000 and engaged in the following stock transactions:
Mar. 1 Issued 10,000 shares of common stock for cash.
Apr. 1 Reacquired 2,000 shares of common stock as treasury stock.
Aug. 1 Resold 1,000 shares of treasury stock for cash.
Sept. 1 Declared and issued a 50% stock dividend on common stock.
Required:
1. Determine if Guthrie has a simple or complex capital structure.
2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2016 income statement.
3. Compute the basic EPS that would be disclosed by Guthrie.


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  • CreatedOctober 05, 2015
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