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Basic Earnings per Share:
Lyon Company shows the following condensed income statement information for the year ended December 31, 2013:
Lyon declared dividends of $6,000 on preferred stock and $17,280 on common stock. At the beginning of 2013, 10,000 shares of common stock were outstanding. On May 4, 2013, the company issued 2,000 additional common shares, and on October 19, 2013, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible.
Required:
Compute the 2013 basic earnings per share. If required, round your answer to the nearest cent.$ per shareShow the 2013 income statement disclosure of basic earnings per share. If required, round your answers to the nearest cent.
Income before extraordinary items
$ per share
Extraordinary loss
per share
Net income
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1.On January 1, 2013, LLB Industries borrowed $200,000 from trust Bank by issuing a two year, 10% note, with interest payable quarterly.
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