Ask Question
BusinessBusiness
30 September, 23:29

Junkyard Arts, Inc., had earnings of $290,400 for the year. The company had 52,000 shares of common stock outstanding during the year and issued 2,500 shares of $100 par value preferred stock. The preferred stock has a dividend of $8 per share. There were no transactions in either common or preferred stock during the year. Determine the basic earnings per share for Junkyard Arts for the year

+1
Answers (1)
  1. 1 October, 02:14
    0
    The basic EPS for Junkyard Arts, Inc. is $5.2 per share.

    Explanation:

    The basic earnings per share is the amount of net income that is earned per share of common equity or the amount of net income attributable to each share of common stock. The basic earnings per share (EPS) is calculated using the following formula,

    Basic EPS = (Net Income - Preferred stock dividend) / Weighted average number of common shares outstanding

    The preferred stock dividend for the period was = 8 * 2500 = 20000

    Basic EPS = (290400 - 20000) / 52000

    Basic EPS = $5.2
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Junkyard Arts, Inc., had earnings of $290,400 for the year. The company had 52,000 shares of common stock outstanding during the year and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
One financial institution is offering a 1% interest rate on savings accounts while another institution is offering a 2% interest rate on savings accounts. Out of the two financial institutions, which offer would the bank probably be offering
Answers (1)
If nominal GDP is $10 trillion and real GDP is $12 trillion, then the GDP deflator is a. 83.33, and this indicates that the price level has decreased by 16.67 percent since the base year. b. 83.
Answers (1)
In the early days of book publishing, publishers functioned as:
Answers (1)
Gina Davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently.
Answers (2)
Trilane Systems is a small business. Its owner, Myra, is also its only employee. She handles the business's operations herself and is responsible for all of the business's income and losses.
Answers (1)
New Questions in Business
You plan to borrow $ 2 comma 000 from a bank. In exchange for $ 2 comma 000 today, you promise to pay $ 2 comma 100 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective?
Answers (1)
Which of the following is indicative of a short-term restrictive financial policy? a) purchasing inventory only as needed b) granting credit to more customers c) increased investment in marketable securities d) maintaining a large accounts
Answers (2)
You are employed as an administrative staff member of a community healthcare office that just opened last month. you and your manager are working hard to advertise and expand the customer base.
Answers (1)
The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $295 each. The company has a 30% income tax rate.
Answers (1)
The person who receives financial protection from a life insurance plan is called a what?
Answers (1)
Home » Business » Junkyard Arts, Inc., had earnings of $290,400 for the year. The company had 52,000 shares of common stock outstanding during the year and issued 2,500 shares of $100 par value preferred stock. The preferred stock has a dividend of $8 per share.
Sign Up Forgot Password?