Reference no: EM132994134

Question - Dawson Company had 240,000 shares outstanding from January through May 2017.  They repurchased 40,000 on June 1 and issued 10,000 shares on September 1.

REQUIRED -

Calculate the weighted average number of shares outstanding

Calculate the basic earnings per share assuming Dawson earned Net income of $260,000 and no preferred shares outstanding.

Calculate Earnings per share and show Income Statement presentation of EPS assuming the following:

Income from continuing operations of $285,000               

Loss from discontinued operations of $55,000 (net of tax)

Net Income of $230,000

Preferred Shares, $3 cumulative, 55,000 shares authorized, 20,000 issued and outstanding

Preferred dividends in arrears one year