Computing EPS: Simple Capital Structure and Net Loss

Grace Corp. had $200,000$ common shares outstanding as of January $1,$ and declared a $1-$for$-2$ reverse stock split on March $31.$ In addition, the company bought $10,000$ shares for the treasury on August $31,$ and $4,000$ shares of stock were issued on November $1$ in exchange for legal services. The company also had $2,000$ shares of $5\%,$ $$10$ par, cumulative, nonconvertible preferred stock outstanding for the year. No common or preferred stock dividends were declared during the year. The company suffered a net loss for the year of $$200,000.$

Required

Compute basic EPS.

$$Note: Round weighted average common shares outstanding to the nearest whole number.

$$Note: Use a negative sign with a loss.

Calculation of Weighted Shares Outstanding:

WeightedAvg. SharesInclusive DatesOutstandingJan. $-$ Mar.Answer $1$

Apr. $-$ Aug.Answer $2$

Sept. $-$ Oct.Answer $3$

Nov. $-$ Dec.Answer $4$

NumeratorDenominatorPer ShareBasic EPSAnswer $5$

$/$Answer $6$

$=$