Compute the basic earnings per share

Assignment Help Financial Accounting

Reference no: EM13132019

Assume that the following data relative to Kane Company for 2013 is available:
Net Income $2,100,000
Transactions in Common Shares Change Cumulative
Jan. 1, 2013, Beginning number 700,000
Mar. 1, 2013, Purchase of treasury shares (60,000) 640,000
June 1, 2013, Stock split 2-1 640,000 1,280,000
Nov. 1, 2013, Issuance of shares 180,000 1,460,000
8% Cumulative Convertible Preferred Stock
Sold at par, convertible into 200,000 shares of common
(adjusted for split). $1,000,000

Instructions

(a) compute average number of shares outstanding for 2013.

(b) Compute the basic earnings per share for 2013. (Round to the nearest penny.)

Stock Options Exercisable at the option price of $25 per share. Average market price in 2013, $30

(market price and option price adjusted for split). 90,000 shares

(a) Calculate the number of shares used for calculating diluted EPS.

(b)Calculate diluted EPS for year 2013.

Reference no: EM13132019

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