Question: On January 1, 2015, Wilke Corp. had 540,000 shares of common stock outstanding. During 2015, it had the following transactions that affected the Common Stock account.
February 1 Issued 146,000 shares
March 1 Issued a 10% stock dividend
May 1 Acquired 100,000 shares of treasury stock
June 1 Issued a 3-for-1 stock split
October 1 Reissued 61,300 shares of treasury stock
(a) Determine the weighted-average number of shares outstanding as of December 31, 2015. The weighted-average number of shares outstanding-----------
(b) Assume that Wilke Corp. earned net income of $3,315,000 during 2015. In addition, it had 120,000 shares of 10%, $103 par nonconvertible, noncumulative preferred stock outstanding for the entire year. Because of liquidity considerations, however, the company did not declare and pay a preferred dividend in 2015. Compute earnings per share for 2015, using the weighted average number of shares determined in part (a). (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share--------
(c) Assume the same facts as in part (b), except that the preferred stock was cumulative. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Earnings Per Share $--------
(d) Assume the same facts as in part (b), except that net income included an extraordinary gain of $918,000 and a loss from discontinued operations of $529,000. Both items are net of applicable income taxes. Compute earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)