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Question - At December 31, 2020 Sheridan Company had 192000 shares of common stock and 9200 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On February 10, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Sheridan declared a 100% stock dividend on its common stock. Net income for 2021 was $954000. In its 2021 financial statements, calculate the Sheridan's 2021 earnings per common share?
a. $1.44.
b. $4.77.
c. $4.50.
d. $2.36.
Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,500 prior to adjustment.
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