Problem 1 (20 marks) Traditional Bathrooms Inc. (TBI) had 80,000 ordinary shares outstanding on January 1,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 1 (20 marks) Traditional Bathrooms Inc. (TBI) had 80,000 ordinary shares outstanding on January 1, 2017. Transactions throughout 2017 affecting its shareholdings follow. February 1: TBI issued 200,000, $10, cumulative 10% preferred shares. March 1: TBI issued 40,000 ordinary shares. April 1: TBI declared and issued a 8% stock dividend on the ordinary shares. July 1: TBI repurchased and cancelled 30,000 ordinary shares. October 1: TBI declared and issued a 3-for-1 stock split on the ordinary shares. December 31: TBI declared $99,600 in dividends on the ordinary shares. Net income for the year ended December 31, 2017 was $600,000. Its tax rate was 40%. Required: a. What was weighted average number of ordinary shares outstanding in 2017? (10 marks) b. What was basic EPS in 2017? (10 marks) Problem 1 (20 marks) Traditional Bathrooms Inc. (TBI) had 80,000 ordinary shares outstanding on January 1, 2017. Transactions throughout 2017 affecting its shareholdings follow. February 1: TBI issued 200,000, $10, cumulative 10% preferred shares. March 1: TBI issued 40,000 ordinary shares. April 1: TBI declared and issued a 8% stock dividend on the ordinary shares. July 1: TBI repurchased and cancelled 30,000 ordinary shares. October 1: TBI declared and issued a 3-for-1 stock split on the ordinary shares. December 31: TBI declared $99,600 in dividends on the ordinary shares. Net income for the year ended December 31, 2017 was $600,000. Its tax rate was 40%. Required: a. What was weighted average number of ordinary shares outstanding in 2017? (10 marks) b. What was basic EPS in 2017? (10 marks)
Expert Answer:
Answer rating: 100% (QA)
a What was weighted average number of ordinary shares outstanding in 2017 10 marks ANS WER Weight ed ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259307959
4th edition
Authors: David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
What is the weighted average number of shares for computing earnings per share and how is it calculated?
-
Douglas Corporation had 120,000 ordinary shares outstanding on January 1, 2019. On May 1, 2019, Douglas issued 60,000 ordinary shares. On July 1, Douglas purchased 10,000 treasury shares, which were...
-
Tomba Group had 300,000 ordinary shares outstanding on January 1, 2019. On May 1, Tomba issued 30,000 ordinary shares. (a) Compute the weighted-average ordinary shares outstanding if the 30,000...
-
Growth Strategy A. Organic Growth This section describes how JB Hi-Fi Australia can take advantage of various organic growth strategies, including new product development, market development and...
-
What nonbank businesses are bank holding companies permitted to acquire under the law?
-
Of the light bulbs delivered on May 25, 400 are produced in the morning shift, 300 in the evening shift, and 300 in the night shift. Say we pick a light bulb at random. (a) What is the probability...
-
Consider the three-component system consisting of acetaldehyde (1), hydrogen (2), and ethanol (3). The binary diffusivity values at \(548 \mathrm{~K}\) and \(101.3 \mathrm{kPa}\) are given in Example...
-
Suppose that the standard deviation of returns from a typical share is about .40 (or 40 percent) a year. The correlation between the returns of each pair of shares is about .3. a. Calculate the...
-
How much money needs to be set aside every year, for the next 10 years, to purchase a crane? The money is expected to earn 7% interest compounded annually and yearly inflation is expected to be 4%....
-
Consider the following scenario in the hypothetical country of Zootopia: The government budget deficit is $80 billion, total domestic savings are $1.2 trillion, and total domestic investment in...
-
write a code in Processing wherein every time the pedestrian (the angel) hits the vehicle (the cloud), it loses a life and once the life hits 0, the game ends. Every time the pedestrian crosses the...
-
The importance of trust in business Its hard to quantify exactly how important trust is for a business. For business owners, a lack of trust is your biggest expense. It may take years for a manager...
-
Prakash thinks it's important to ask team members how what's going on outside the team is affecting them. Carla thinks there should be a clear separation between the team and members' experiences...
-
You want to communicate a new job opening at your workplace to your personal and professional networks. There are many available details about the job that you'd like to share, and none of it is...
-
You have a client named Fiona. When you first started working with Fiona, you quickly developed a rapport with her and found that you were able to work effectively with her. However, recently, Fiona...
-
Why competencies are important for our success and development? Briefly state 3 points. What are 3 competencies that you would like to focus for yourself? What benefits it gives to have better...
-
Burleigh Brews Pty Ltd disposed of a delivery vehicle on 31 October 2022 receiving cash proceeds from the sale of $5,500 (GST Inclusive). The delivery vehicle had been purchased on 1 January 2018 for...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
What are purchase cards and a petty cash fund?
-
On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances: During January 2018, the following transactions occur: Borrow $100,000 from Captive Credit...
-
At the end of 2018, Worthy Co.'s balance for Accounts Receivable is $20,000, while the company's total assets equal $1,500,000. In addition, the company expects to collect all of its receivables in...
-
Two high aspect ratio identical rectangular wings \(\left(\begin{array}{lll}2L & x & 2 b\end{array} ight)\) are separated with a distance \(h\). Establish an expression for the downwash in terms of...
-
The Newtonian impact theory is valid at high angles of attack. The wall inclination for a blunt body gradually decreases along the free stream direction. For such cases, when this angle is less than...
-
The ellipsoid given in Problem 2.3 is also undergoing a pulsative major axis change with the same period but with phase difference \(\phi\). Express the equation of surfaces. Problem 2.3 An oblate...
Study smarter with the SolutionInn App