Calculate the weighted average number of ordinary shares

Assignment Help Accounting Basics
Reference no: EM132840668

Tornado Buildings Inc. (TBI) had 100,000 ordinary shares outstanding on January 1, 2020. It also had 300,000 cumulative preferred shares with a $1.00 dividend. Transactions throughout 2020 affecting its shareholdings follow.

March 1: TBI issued 90,000 ordinary shares
April l: TBI declared and issued a 9% stock dividend on the ordinary shares
July 1: TBI repurchased and cancelled 50,000 ordinary shares.
October 1: TBI declared and issued a 2-for-l stock split on the ordinary shares
Net income for the year ended December 31, 2020 was $900,000. Its tax rate was 30%.

Required:

Problem 1: Calculate the weighted average number of ordinary shares outstanding in 2020.

Problem 2: Calculate basic EPS in 2020.

Problem 3: Assume the preferred shares were not cumulative calculate Basic EPS for 2020

Reference no: EM132840668

Questions Cloud

Determine the net income available to ordinary shareholders : Determine the net income available to ordinary shareholders for the year ended December 31, 2020. Big Rig Trucking Inc. earned $3,000,000.
Combining global knowledge with local needs : Using the concepts of convergence, divergence and crossvergence, how can a company tackle institutional and cultural differences for management
Calculate the spending variance and idle capacity variance : Following data of ABC Company is available: Estimated production: 200,000 units. Calculate the Spending variance and Idle capacity variance
What is the revenue and operating profit : For a conisgnment shop as a project venture, what is the revenue and operating profit you hope to achieve, say in five years?
Calculate the weighted average number of ordinary shares : Calculate the weighted average number of ordinary shares outstanding in 2020. Assume the preferred shares were not cumulative calculate Basic EPS for 2020.
Examine the leadership theories and behaviors introduced : A walk through the Business section of any bookstore or a quick Internet search on the topic will reveal a seemingly endless supply of writings on leadership.
Find the amount of other comprehensive income : At the beginning of the current year, Compute the amount of other comprehensive income relating to the pension plan for the year.
Definition of culture characterised by large power distance : Q1. Which of the following corresponds to Hofstede's definition of a culture characterised by large power distance?
Evaluate what this decline means for firm financial health : A firm's current ratio declined from 2.2 in 2018 to 1.3 in 2019. Evaluate what this decline means for the firm's financial health

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd