Compute earnings per share data

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Reference no: EM132461208

(Earnings per Share) The equity section of Sosa SA appears below as of December 31, 2019.

Share capital-preference (6% preference shares, R$50 par value, authorized 100,000 shares, outstanding 90,000 shares)

 

R$       4,500,000

Share capital-ordinary (R$1 par, authorized and issued 10 million shares)

 

10,000,000

Share premium-ordinary

 

20,500,000

Retained earnings

R$134,000,000

 

Net income

33,000,000

 

 

167,000,000

 

 

R$202 000 000

Net income for 2019 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of R$12,000,000 (before tax) as a result of discontinued operations. Preference dividends of R$270,000 were declared and paid in 2019. Dividends of R$1,000,000 were declared and paid to ordinary shareholders in 2019.

Instructions

Question 1: Compute earnings per share data as it should appear on the income statement of Sosa SA.

Reference no: EM132461208

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