The following condensed financial statements for Hudson Corporation were prepared

The following condensed financial statements for Hudson Corporation were prepared by the accounting department.
The following condensed financial statements for Hudson Corporation were prepared

Hudson Corporation
Balance Sheet
December 31, 2013
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,850,000
Liabilities:
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000
6% bonds, due December 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Stockholders' equity:
Common stock, $10 par, 250,000 shares authorized, issued and outstanding . . . . 2,500,000
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
Total liabilities and stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,850,000
Instructions:
Compute the basic EPS under each of the following independent assumptions (the company has a simple capital structure).
1. No change in the capital structure occurred in 2013.
2. On December 31, 2012, there were 160,000 shares outstanding. On May 1, 2013, 60,000 shares were sold at par, and on October 1, 2013, 30,000 shares were sold at par.
3. On December 31, 2012, there were 200,000 shares outstanding. On July 1, 2013, the company issued a 25% stock dividend.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

Members

  • Access to 1 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION
OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors .
Best for online homework instance.