Burns Company reported $796.765 million in net income in 2021. On January 1, 2021, the company had
Question:
Burns Company reported $796.765 million in net income in 2021. On January 1, 2021, the company had 401 million shares of common stock outstanding. On March 1, 2021, 24.6 million new shares of common stock were sold for cash. On June 1, 2021, the company's common stock split 2 for 1. On July 1, 2021, 8.6 million shares were reacquired as treasury stock.
Required:
Compute Burns' basic earnings per share for the year ended December 31, 2021
2: On January 1, 2021, Algerian Delivery had 100,000 shares of common stock outstanding. The following transactions occurred during 2021:
March1:Reacquired 3,900 shares, accounted for as treasury stock.
September30:Sold all the treasury shares.December1:Sold 12,900 new shares for cash.
December31:Reported a net income of $306,750.
Required:
Calculate Algerian Delivery's basic earnings per share for the year ended December 31, 2021.
3: On December 31, 2020, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred stock (par $10). On February 28, 2021, The preferred stock was convertible into 30,000 shares of common stock. Merlin issued an additional 36,000 shares of common stock. A 10% stock dividend was declared and distributed on July 1, 2021. On September 1, 2021, 9,000 shares were retired. At year-end, there were fully vested incentive stock options outstanding for 30,000 shares of common stock (adjusted for the stock dividend). The exercise price was $18. The market price of the common stock averaged $20 during the year. Also outstanding were $1,000,000 face amount of 10% convertible bonds issued in 2018 and convertible into 50,000 common shares (adjusted for the stock dividend). Net income was $900,000. The tax rate for the year was 25%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2021.
4: During 2021, Farewell Inc. had 517,000 shares of common stock and 58,500 shares of 4% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Farewell did not declare or pay any dividends during 2021.
Farewell's net income for the year ended December 31, 2021, was $4.2 million. The income tax rate is 15%. Farewell granted 27,000 stock options to its executives on January 1 of this year. Each option gives its holder the right to buy 20 shares of common stock at an exercise price of $46 per share. The options vest after one year. The market price of the common stock averaged $47 per share during 2021.
What is Farewell's diluted earnings per share for 2021, rounded to the nearest cent?
5: The shareholders' equity of HS Corporation includes $300,000 of $1 par common stock and $600,000 par of 6% cumulative preferred stock. The board of directors of HS declared cash dividends of $70,000 in 2021 after paying $30,000 cash dividends in 2020 and $50,000 in 2019.
Required:
What is the amount of dividends common shareholders will receive in 2021?
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer