Howe Ltd. had 34,000 common shares on January 1, 2021. On May 1, 3,000 common shares were reacquired and retired. On August 31 and November 30, 9,000 and 6,000 common shares were issued, respectively.

Howe Ltd. reported a net income of $370,000. Howe Ltd. also had 10,000 $2 cumulative preferred shares, on which the dividend for the current year was declared and paid.

Your answers for blanks 1 and 2 should be provided with NO DOLLAR SIGNS ($), COMMAS (,), or PERIODS (.) and be rounded to the nearest dollar. For example, $100,000.34 should be entered as 100000 whereas $100,000.67 should be entered as 100001

Blank 1 – what is the dollar value of the numerator used to calculate the basic earnings per share.

Blank 2 – what is the denominator used to calculate the basic earnings per share

Your answers for blank 3 should include the period to separate the dollars from the cents

Blank 3 – What is the basic earnings per share. Answer rounded to two decimal places – for example if earnings per share is $7.42, enter 7.42

Answer rating: 100% (QA)

Dollar value for the numerator Net income prefe... View the full answer