21. Comparative Statements of Retained Eamings for Renn-Dever Corporation were r
ID: 2557892 • Letter: 2
Question
21. Comparative Statements of Retained Eamings for Renn-Dever Corporation were reported as follows for the iscal years ending December 31, 2014, 2015, and 2016 Statements of Retained Earnings the Years Ended December 31 Balance at beginning of year Net income (loss) Deductions: 2016 2015 $6,970,692 $5,584,452 $5,694,552 3,315,700 2,310,900 (110,100) 2014 Stock dividend (35,400 shares) Common shares retired, September 30 (140,000 shares) Common stock cash dividends 249,000 219,660 705,000 896,950 Balanoe at end of year $9,140,442 $6,970,692 $5,584,452 At December 31, 2013, paid-in capital consisted of the following: Common stock, 1,910,000 shares at $1 par, $1,910,000 Paid in capital excess of par 7490,000 No preferred stock or potential common shares were outstanding during any of the periods shown. Compute Renn-Dever's eamings per share as it would have appeared in income statements for the years ended Deoembor 31, 2014, 2015, and 2016. (Negative amounts should be indicated by a minus sign.) Earnings (Net Loss) Year 2014 2015 2016 Numerator Denominator esc FI F2 ESExplanation / Answer
Basic earnings per share is calculated by dividing the net profit or loss on continuing operations by the weighted average number of ordinary shares in issue during the period.
EPS = Net profit or loss attributable to ordinary shareholders during a period / by the weighted average number of ordinary shares in issue during the period.
Note:
year 2014 total outstanding share = share outstanding on 31st dec 2013+ Common stock dividend
= 1910000+35400
=1945400
Year 2015 outstanding share = total share outstanding at 31st dec 2014- share retired
= 1945400-140000
= 1805400
Year 2016 outstanding share = 1805400
Computation of earning per share.
Year Numerator / Denominator Earning (net loss) per share 2014 33157000 / 1945400 17.04 2015 2310900 / 1805400 1.28 2016 -110100 / 1805400 -0.06Related Questions
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