Question: 1. What type of an account is the Common Dividend Payable account?
2. When does a dividend become a company's legal obligation?
3. Franklin Company reports $698,000 of net income for 2011 and declares $75,500 of cash dividends on its preferred stock for 2011. At the end of 2011, the company had 175,000 weighted-average shares of common stock.
1. What amount of net income is available to common stockholders for 2011? Check
2. What is the company's basic EPS for 2011? Round your answer to the nearest whole cent.