Hardaway Fixtures\' balance sheet at December 31, 2015, included the following:

Question

Hardaway Fixtures' balance sheet at December 31, 2015, included the following:

Shares issued and outstanding:

Common stock, $1 par $ 1,140,000

Nonconvertible preferred stock, $50 par 15,000

On July 21, 2016, Hardaway issued a 25% stock dividend on its common stock. On December 12 it paid $90,000 cash dividends on the preferred stock. Net income for the year ended December 31, 2016, was $5,400,000.

Required: Compute Hardaway's earnings per share for the year ended December 31, 2016. (Enter your answers in thousands.)

Explanation / Answer

Net income for the year ended December 31, 2016, was $5,400 thousands

less:paid $90 thousands cash dividends on the preferred stock

Earnings available for common stock=$$5,310 thousands

Hardaway's earnings per share =5,310,000/1,140,000=$4.657 per share

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