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. 2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2016 income statement. Round your answer to the nearest whole number. 3. Compute the basic EPS that would be disclosed by Guthrie. Round your answer to 2 decimal places.

Answer rating: 100% (QA)

Required solution Solution 1 1 Determine if Guthrie has a simple or complex capital struc... View the full answer