During the year ended December 31, 2014, Gluco, Inc., split its stock on a 5-for

Question

During the year ended December 31, 2014, Gluco, Inc., split its stock on a 5-for-1 basis. In its annual report for 2013, the firm reported net income of $937,200 for 2013, with an average 200,600 shares of common stock outstanding for that year. There was no preferred stock. Required: a. What amount of net income for 2013 will be reported in Gluco's 2014 annual report? b. Calculate Gluco's earnings per share for 2013 that would have been reported in the 2013 annual report. (Round your answer to 2 decimal places.) c. Calculate Gluco's earnings per share for 2013 that will be reported in the 2014 annual report for comparative purposes. (Round your answer to 2 decimal places.)

Explanation / Answer

Particulars 2013 Annual Report- 2013 2014 Annual Report- 2013 2014 Net income 937200 937200 NA Earnings Per Share 4.67 0.93 NA Average Shares of Common Outstanding 200600 1003000 NA

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