Exercise 4-13 At December 31, 2016, Coronado Corporation had the following stock

Question

Exercise 4-13 At December 31, 2016, Coronado Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,903 shares $10,890,300 Common stock, $5 par, 4,079,240 shares 20,396,200 During 2017, Coronado did not issue any additional common stock. The following also occurred during 2017. Income from continuing operations before taxes Discontinued operations (loss before taxes) Preferred dividends declared Common dividends declared Effective tax rate $23,214,400 $3,311,400 $1,089,030 $2,372,200 35 % Compute earnings per share data as it should appear in the 2017 income statement of Coronado Corporation. (Round answers to 2 decimal places, e.g. 1.48.) Earnings Per Share

Explanation / Answer

Net Income Income from Continuing Operations before Income Tax    23,214,400.00 Income Tax - 35% X $23,214,400      8,125,040.00 Income from Continuing Operations    15,089,360.00 Discontinue Operations Loss Before Taxes    3,311,400.00 Less: Applicable Income Tax    1,158,990.00      2,152,410.00 Net Income    12,936,950.00 Preferred Dividend Decalred      1,089,030.00 Weighted Average Common Shares Outstanding            4,079,240 Earning Per Share: Income from Continuing Operations                       3.43 ($15,089,360 - $1,089,030) / 4,079,240 Discontinued Operations, net of Tax                     (0.53) $2,152,410 / 4,079,240 Net Income ($12,936,950 - $1,089,030) / 4,079,240                       2.90

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