Question

During 2019 Sasha Corporation reported a net income of $1,529,500. On January 1, 2020, Sasha had 350,000 shares of common stock outstanding, and issued an additional 210,000 shares of common stock on October 1. The company has a simple capital structure. Determine the weighted-average number of common shares outstanding and compute the earnings per share.

Name: during 2019 sasha corporation reported a net income of 1529500 on january 1 2020 sasha had 350000 shares of common stock outstanding and issued an additional 210000 shares of common stock on 83797
Uploaded: 2022-04-30T18:46:09-08:00
Duration: 3 min 6 s
Channel: Kevra Barney
Description: during 2019 sasha corporation reported a net income of 1529500 on january 1 2020 sasha had 350000 shares of common stock outstanding and issued an additional 210000 shares of common stock on 83797

          During 2019 Sasha Corporation reported a net income of $1,529,500. On January 1, 2020, Sasha had 350,000 shares of common stock outstanding, and issued an additional 210,000 shares of common stock on October 1.  The company has a simple capital structure.  Determine the weighted-average number of common shares outstanding and compute the earnings per share.

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Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Kevra Barney

04/30/2022

Step 1

- For 3/4 of the year (January 1 to September 30): 350,000 shares * 3/4 = 262,500 shares - For 1/4 of the year (October 1 to December 31): 560,000 shares * 1/4 = 140,000 shares - Add these two numbers together: 262,500 + 140,000 = 402,500 shares Show more…

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During 2019 Sasha Corporation reported a net income of $1,529,500. On January 1, 2020, Sasha had 350,000 shares of common stock outstanding, and issued an additional 210,000 shares of common stock on October 1. The company has a simple capital structure. Determine the weighted-average number of common shares outstanding and compute the earnings per share.