$50,000 and $150,000 c) $150,000 and $50,000 $100,000 and $O Stockholders\' Equi
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$50,000 and $150,000 c) $150,000 and $50,000 $100,000 and $O Stockholders' Equity can Stockholders' Equity can best be described as a. Assets less Long Term Liabilities 7. he cumulative amount of earnings, less any dividend distributions, retained by the business b. The net worth of the company less any debt stockholders after payment of all d./ Amounts available to common and that ma outstanding liabilities or the rsiduaj intre outstanding liabiis m saua claimedby share noidirs au Global Inc. had 100,000 shares of common stock issued and outstanding at December 31, 2013. On April 1, 2014 an additional 2,000 shares were issued for cash. On August 1, Global Inc. acquired 12 employee stock options. On October 1, all the Treasury shares were re-issued. 8. treasury shares to be used for The number of shares to be used in computing basic earnings per share for 2014 is? IDOODDxe/12 =50,000 a. 102,000 b. 99,500 c. 100,000 49,000 20000 99,000Explanation / Answer
Solution.
Calculation for outstanding share for EPS purpose.
Share outstanding at 31st Dec 2013 = 100,000
Additional issue share at 1st April = 2,000
On 1st august share accquired = (12,000)
On 1st oct all share were resale = 12,000
Total share outstanding = 102,000 share.
Answer is (A).
10. Calculation of Earning per share in 2014.
Net Income = $1,200,000
Dividend of prefferd stock :-
For 2013 = (10,000 x 1,000) x 10% = ($100,000)
For 2014 = (10,000 x 1,000) x 10% = ($100,000)
Balance income = $1,000,000
Noumber of common stock = 200,000
E.P.S $1,000,000 / 200,000 = $5.00
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