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Posted by: Homeworkhelp
Price Quoted by Student: $4
Posted On: 2012-05-26 02:02:00
 
Question

E13-13 Nexus Company reports $1,350,000 of net income for 2005 and declares $195,000 of cash dividends on its preferred stock for 2005

 

E13-13 Accounting for Corporations chapter 13

Larson−Wild−Chiappetta: Fundamental Accounting Principles, 17th Edition

 

E13-13 Nexus Company reports $1,350,000 of net income for 2005 and declares $195,000 of cash dividends on its preferred stock for 2005. At the beginning of 2005, the company had 270,000 outstanding shares of common stock. Two events change the number of outstanding common shares during 2005:

 

May 1 Issued 180,000 common shares for cash.

Nov. 1 Purchased 108,000 shares of its own common stock.

1. What amount of net income is available to common stockholders for 2005?

2. What is the weighted-average number of common shares outstanding for 2005?

3. What is the company’s basic EPS for 2005?

 

Check (2) 372,000 shares


Solutions
Exercise 13-13 1. Net income $1,350
Price $4
Attachment 1: E13-13 Nexus Company.doc
Solution Posted By: Homeworkhelp    Posted on: 26-05-2012