Rodgers Corporation reported basic earnings per share of $1.25 for the year ended December 51, 2016. Rodgers had 8,000 shares of cumulative, nonconvertible $100 par, 12% preferred stock outstanding during all of 2016. The company began 2016 with 200,000 shares of common stock outstanding and ended the year with 400,000 share of common stock outstanding, due to issuing 200,000 shares on July 1, 2016.
Required:
Determine Rodgers’s net income for 2016.
Weighted Average Shares Jumbo Corporation reported the following information about its stock on its December 31, 2015, balance sheet:
Preferred stock, $100 par value, 6% cumulative,
30,000 shares authorized 1,000 shares issued and outstanding ....$100,000
Common stock, $10 par value, 150,000 shares
authorized 50,000 shares issued and outstanding........ 500,000
Jumbo Corporation engaged in the following stock transactions during 2016:
Mar. 1 Issued 10,000 shares of common stock for cash.
Apr. 1 Purchased 2,000 shares of common stock as treasury stock.
Aug. 1 Resold 1,000 shares of treasury stock.
Sept. 1 Declared and distributed a 50% stock dividend on common stock.
Required:
Calculate the number of shares that Jumbo would use to calculate basic EPS for its 2016 income statement.