Scotland Corporation had net income for 2018 of $ 75 comma 000$75,000. Scotland

Question

Scotland Corporation had net income for 2018 of

$ 75 comma 000$75,000.

Scotland had

13 comma 00013,000

shares of common stock outstanding at the beginning of the year and

28 comma 00028,000

shares of common stock outstanding at the end of the year. There were

9 comma 0009,000

shares of preferred stock outstanding all year. During? 2018, Scotland declared and paid preferred dividends of

$ 18 comma 000$18,000.

What is? Scotland's earnings per? share? (Round the answer to two decimal? places.)

A.

$ 2.04$2.04

B.

$ 2.78$2.78

C.

$ 2.68$2.68

D.

$ 3.66$3.66

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The Lattimore Company is a retail company that began operations on October 1, 2018, when it incorporated in the Following is the chart of accounts for The Lattimore Company. As a new business, all beginning balances are state of North Carolina. The Lattimore Company is authorized to issue 150,000 shares of $1 par value commonEClick the icon to view the chart of accounts.) stock and 60,000 shares of 6%, $40 par value preferred stock The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 7% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month The Lattimore Company completed the following transactions during the last quarter of 2018, its first year of operations: i (Click the icon to view the transactions.) Read the requirements Requirement 1b. In preparation for recording the transactions, prepare: Payroll registers for October, November, and December. All employees worked October 1 through December 31 and are subject to the following FIC $118,500 earned; M up to on eamings a er for October. (Round all amounts to the nearest cent. Complete all answer boxes. Enter a "O for any zero balances. Abbreviations used: Beg.-Beginning: Cum umulative; Earn arnings; Med. Medicare; Ins-Insurance; With Withholdings

Explanation / Answer

Answer is B. $ 2.78 per share Explanation: Net Income 75000 Less: Preferred dividend 18000 Net income available ffor common Stockholders 57000 Divide: Average No. of shares f common stck outstanding 20500 (13000+28000) /2 Earning per share 2.780488

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