Problem 1: During the year ended December 31,2009, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2008, the firm reported net income of $3,703,920 for 2008, with an average 268,400 shares of common stock outstanding for that year. There was no preferred stock.
Required:
A. What amount of net income for 2008 will be reported in Gluco's 2009 annual report?
B. Calculate Gluco's earnings per share for 2008 that would have been reported in the 2008 annual report.
C. Calculate Gluco's earnings per share for 2008 that will be reported in the 2009 annual report for comparative purpose.