The 2015 balance sheet for Guthrie Corporation revealed the following information: Common stock, S10 par, 50,000...

 

Transcribed Image Text:

The 2015 balance sheet for Guthrie Corporation revealed the following information: Common stock, S10 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: Issued 10,000 shares of common stock for cash. Reacquired 2,000 shares of common stock as treasury stock. Resold 1,000 shares of treasury stock for cash. Declared and issued a 50% stock dividend on common stock. Mar. 1 Apr. 1 Aug. 1 Sept. 1 Required: 1. Determine if Guthrie has a simple or complex capital structure. 2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2016 income statement. 3. Compute the basic EPS that would be disclosed by Guthric. The 2015 balance sheet for Guthrie Corporation revealed the following information: Common stock, S10 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: Issued 10,000 shares of common stock for cash. Reacquired 2,000 shares of common stock as treasury stock. Resold 1,000 shares of treasury stock for cash. Declared and issued a 50% stock dividend on common stock. Mar. 1 Apr. 1 Aug. 1 Sept. 1 Required: 1. Determine if Guthrie has a simple or complex capital structure. 2. Calculate the weighted average number of shares of stock that should be used to calculate EPS for the 2016 income statement. 3. Compute the basic EPS that would be disclosed by Guthric.

Answer rating: 100% (QA)

1 2 3 Since the company G has no converti... View the full answer