Reference no: EM133239515
Simple capital structure. Weighted Average
On January 1, 2012, Stairshard Corp. had 480,000 shares of common stock outstanding. During 2012 it had the following transactions that affected the Common Stock account:
February-1 Issued 120,000 shares
March-1 Issued a 20% stock dividend
May-1 Purchased 100,000 shares of treasury stock
June-1 Issued a 3-for-1 stock split
Oct-1 Sold 60,000 shares of treasury stock (previously purchased)
Instructions - Calculate Weighted Average.
1- First - Determine the weighted average. Number of outstanding shares as of December 31, 2012. Construct table.
2- Second - Stairshard Corp. obtained a net income of $3,256,000 during 2012. Calculate EPS for 2012. Use the weighted average number of shares determined in the first part.
In addition, Stairshard Corp. had 100,000 preferred shares at 9%, $100 par non-convertible, non-cumulative preferred shares outstanding for the full year. The company did not declare or pay a dividend in 2012.