The Alford Group had 330,000 shares of common stock outstanding at January 1, 20
ID: 2596767 • Letter: T
Question
The Alford Group had 330,000 shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year. There are no potential common shares outstanding.
Determine the 2016 EPS. (Enter your answers in thousands.)
Determine the 2017 EPS. (Enter your answers in thousands.)
At what amount will the 2016 EPS be presented in the 2017 comparative financial statements? (Enter your answers in thousands.)
The Alford Group had 330,000 shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year. There are no potential common shares outstanding.
Explanation / Answer
1 2016 Net Income $642 Date Amount ($) 2016 1st January 330 28th February 308 (27*10/12) = - 22.5 312 (27*2/12) = + 4.6 30th November 321 (108*1/12) = + 9 31st December Earnings Per Share in 2016 (642/321) = $ 2.0 2 2017 (330 -27 +27 + 108) * (2.00) = 438 Shares at Jan 1 Stock split adjustment Earnings Per Share in 2016 (642/438) = $ 1.46 3 2016 EPS in the 2017 comparative financial statements 2016 EPS in the 2017 comparative financial statements (amounts in thousands, except per share amount) Net Income $642 321 * (2.00) = 642 weighted-average sharesas previously calculated Stock split adjustment 2016 EPS in the 2017 comparative financial statements (642/642) = $ 1.00
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