On January 1, 2017, Riverbed Industries had stock outstanding as follows. 6% Cum

Question

On January 1, 2017, Riverbed Industries had stock outstanding as follows. 6% Cumulative preferred stock, s 100 par value, issued and outstanding 9,500 shares Common stock, $10 par value, issued and outstanding 202,000 shares $950,000 2,020,000 To acquire the net assets of three smaller companies, Riverbed authorized the issuance of an additional 166,800 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1,2017 Company B July 1, 2017 Company C October 1, 2017 52,800 82,800 31,200 On May 14, 2017, Riverbed realized a $94,800 (before taxes) insurance gain on discontinued operations. On December 31, 2017, Riverbed recorded income of $306,000 from continuing operations (after tax Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Riverbed Industries as of December 31, 2017, (Round answer to 2 decimal places, eg. $2.55.) Riverbed Industries Income Statement For the Year Ended December 31, 2017 T Income From Continuing Operations 1.05 Discontinued Operations Gain, Net of Tax 1.38 Net Income(Loss)

Explanation / Answer

EPS = Total Earnings / No.Of Outstanding shares

=306000/211500

=1.4468

No .of Outstanding shares = 9500+202000

=211500 Outstanding shares.

Total earnings recorded in the year, 31st December,2017 = 306000.

Therefore,

EPS = 1.44

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