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Fazzino Corporation had 400,000 shares of common stock outstanding for the rst three months of the year. The company issued

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Fazzino Corporation had 400,000 shares of common stock outstanding for the first three months of the year. The company issued 80,000 additional shares on April 1 and another 120,000 shares on September 1. Fazzino reported net income of $375,000 for the year ended December 31. Fazzino has no preferred stock.
Required:
(a) Compute Fazzino’s weighted-average number of shares of common stock outstanding during the year.
(b) Compute Fazzino’s earnings per share for the year.
(c) Why is the weighted-average number of shares of common stock outstanding during a year used for earnings per share rather than the number of shares outstanding at the end of the year?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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a 1 1 3 31 400 000 x 3 12 100 000 4 1 8 31 480 000 x 5 1…View the full answer


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I am milan mondal have done my Msc in physics (special astrophysics and relativity) from the University of burdwan and Bed in physical science from the same University. From 2018 I am working as pgt physics teacher in kendriya vidyalaya no2 kharagpur ,west bengal. And also I am doing advanced physics expert in chegg.com .also I teach Bsc physics . I love to teach physics and acience. If you give me a chance I will give my best to you.
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Core Concepts of Accounting

ISBN: 978-0470499474

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Question Posted: March 27, 2015 06:40:54
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